Question

What is the rate of return on investment if Mr. X bought 350 shares of nominal value Rs. 10 at Rs. 50 each and received 8%
dividend?
​

Answer 1

Answer:

Rate of Return on investment = 1.6 %

Step-by-step explanation:

Shares 350 par value Rs 10.

Total Value = Rs 3500 ( 350 X 10 )

Dividend = Rs 3500 X 8 % = Rs 280

Rate of Return on investment = Rs 280 / (350 Shares X Rs 50)

=Rs280/ Rs 17500

=1.6 %

Answer 2

Answer:

The Rate of Return on Investment is 1.6 %

Step-by-step explanation:

Given :

Total no. of shares = 350

Nominal Value = Rs. 10

MV = Rs. 50

Dividend = 8 %

To find :

The Rate of Return on Investment =

Solution :

★ The Rate of Return on Investment:

$\boxed{\sf{\dfrac{Dividend} {Investment}\times 100}}$

• Dividend = No. of shares × N.V. × Rate of dividend

⇒ 350 × 10 × 8 %

⇒ $\sf{350 \times 10\times\frac{8}{100}}$

Dividend = $\sf{280}$

• Investment = No. of shares × MV

⇒ 350 × 50

⇒ 17,500

The Rate of Return on Investment:

$\boxed{\sf{\frac{Dividend} {Investment} \times 100}}$

⇒ $\sf{\dfrac{280} {17,500} \times 100}$

⇒ $\sf{1.6\%}$

Therefore,

The Rate of Return on Investment is 1.6 %