1.

Prasad purchased a share of face value Rs. 100 when its market price was Rs. 150. Company declared a dividend of 12% on the share. What was the rate of return on the investment Prasad made ?

Answer»

F. V. = Rs. 100, M. V. = Rs. 150, Dividend = 12%

Let rate of return = x % 

If Rs. 150 are invested, the returns are Rs. 12

∴ 12 / 150 = x / 100

x = 12 x 100 / 150 = 8 

∴ The rate of return is 8 %. 



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