Question

Percentage return on ₹100, 12% share of a company bought at 4% discount is ______.

Options

• 10%

• 12%

• 12.5%

• 16%

Answer 1

Percentage return on ₹100, 12% share of a company bought at 4% discount is 12.5%.

Explanation:

Market value = ₹100 − 4% of ₹100 = ₹96; annual dividend = 12% of ₹100 = ₹12.

Return = (₹12 ÷ ₹96) × 100 = 12.5%; the other options do not match this calculation.