Question

Vikas has purchased 150 shares of fv 100 rupees for mv of 120 rupees company has paid dividend at 7% find the rate of return on his involvement

Answer 1

Dividend=n*r*f/100

150*7*100/100

=1050

Now:

Investment=m.v * number of shares

=120*150

=18000

Rate of return=Dividend/Investment*100

=1050/18000*100

=105000/18000

=105/18

=5.8333........

This is the answer.

Hope it helps