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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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Answer» Here, Number of shares = 50, FV = Rs. 100, MV = Rs. 180, rate of dividend = 40% ∴ Sum invested = Number of shares × MV = 50 × 180 = Rs. 9000 Dividend per share = 40% of FV = 40/100 × 100 Dividend = Rs. 40 ∴ Total dividend on 50 shares = 50 × 40 = Rs. 2000 Now, rate of return = \(\frac{\text{Total dividend}}{\text{Sum invested}} \times 100\) \(= \frac{2000}{9000} \times 100\) = 22.2% ∴ Rate of return on investment is 22.2%. |
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