Question

Shivam Yadav bought a share of FV ₹ 9000 for MV of ₹ 15,000. A company declared 20% dividend on the share. Find the rate of return.

Answer 1

FV = ₹ 9000

MV = ₹ 15000

Dividend = 20%

Let the rate of return be x%.

Then, `20/15000 = x/9000`

x = `(9000 xx20)/15000`

= 12%

As a result, the rate of return is 12%.