Question:

Prashant bought 50 shares of FV Rs. 100, having MV Rs. 180. Company gave 40% dividend on the shares. Find the rate of return on investment.

Answer:

Given
Face Value = Rs. 100
Market value = Rs. 180
Rate of Dividend = 40%
Dividend =

⇒ Dividend =

Number of shares brought = 50
Total investment = (50 × 180) = Rs. 9000
Total profit = (40 × 50) = Rs. 2000
Rate of Return =

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Prashant bought 50 shares of FV Rs. 100, having MV Rs. 180. Company gave 40% dividend on the shares. Find the rate of return on investment.

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