Question

If 50 shares of FV Rs.10 were purchased for MV of Rs.25. Company declared 30% dividend on the shares then find (1) Sum investment (2) Dividend received (3) Rate of return.

Answer 1

FV = Rs.10, MV = Rs.25, Number of shares = 50.

(1) Sum investment = 25 x 50 = Rs.1250.

(2) Dividend per share = 10 x 30/100 = Rs. 3

Total dividend received = 50 x 3 = Rs.150

(3) Rate of return = 

Ans : (1) Sum invested is Rs.1250 (2) Dividend received is RS.150 (3) Rate of return is 12%.