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3. Investor buy shares of Rs. 100 at premium of Rs. 400. Company declaresdividend of 30%. He sells the shares after receiving the dividend for Rs 700.What is the rate of return? |
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Answer» Answer: Explanation: FV=100 PREMIUM=400 MV=500 DIVIDEND=DIVIDEND RATE *FV = 30/100*100 =30 ROR. =DIVIDEND/MV *100 = 30/500*100 = 6% |
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