1.

y shares will she get for 20,000Shantilal has purchased 150 shares of FV 100, for MV of 120pany has paid dividend at 7%. Find the rate of return on histment.102

Answer»

(i) Shri Shantilal’s investment = No. of shares × MV

= 150 × 120 = ₹18000

(ii) Dividend per share = FV × Rate of dividend

= 100 × 7%=7/100x 100= ₹7

(iii) Total dividend received : = No. of share × dividend per share

= 150 × 7

= ₹1050

(iv) Rate of return (ROR)=Dividend−received/Sum−investedx100=1050/18000x100= 5.83∴ The rate of return on investment = 5.83%

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