Question

shridhar purchased a share of FV Rs 100 for MV of RS 120. company declared 15%dividend on the share. find the rate of return ​

Answer 1

Answer:

Rate of return =Dividend income×100÷sum investment

ROR=15×100÷120

ROR=1500÷120

ROR=12.5percent

Rate of return is 12.5 percent

Answer 2

The rate of return was 12.5%.

Step-by-step explanation:

Face Value (FV) of a share = 100 Rs.

Market Value (MV) of a share = 120 Rs.

Investment = MV × number of shares

                  = 120 × 1 = 120 Rs.

Dividend = 15% of FV

              = 0.15 × 100

              = 15 Rs.

Rate of return = $\frac{income}{investment}\times 100$

                       = $\frac{15}{120}\times 100$

                       = 12.5%

Rate of return is 12.5%

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