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Question
₹ 25 shares of a company are selling at ₹ 20. If the company is paying a dividend of 12%, then the rate of return is ______.
Options
10%
12%
15%
18%
MCQ
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Solution
₹ 25 shares of a company are selling at ₹ 20. If the company is paying a dividend of 12%, then the rate of return is 15%.
Explanation:
F.V. of each share = ₹ 25
M.V. = ₹ 20
Rate of dividend = 12%
Dividend on each share = `(12)/(100) xx 25` = ₹ 3
Return on ₹ 20 = ₹ 3
And on ₹ 100 = ₹ `(3)/(20) xx 100` = 15%.
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