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Rs. 50 shares of a company are quoted at a discount of 10%. Find the rate of dividend given by the company, the return on the investment on these shares being 20 per cent. |
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Answer» Nominal value of 1 share = Rs. 50 Market value of 1 share = Rs. 50 − 10% of Rs. 50 = Rs. 50 – Rs. 5 = Rs. 45 Profit % on investment = 20% Then profit on 1 share = 20% of Rs. 45 = Rs. 9 ∴ Dividend % = (9/50) ×100%=18% Ans. |
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