Question

A man buys 250, ten-rupee shares each at ₹ 12.50. If the rate of dividend is 7%, find the:

1. dividend he receives annually.
2. percentage return on his investment.

Answer 1

1. Annual Dividend = `250 xx 10 xx 7/100` = ₹ 175
2. Return % = `(7 xx 10)/12.50` = 5.6 %