Question

Rs. 100 shares of a company are sold at a discount of Rs. 20. If the return on the investment is 15%. Find the rate of dividend declared

Answer 1

Market value of each shares = 100 – 20
= Rs.80
Interest on investment of Rs. 80
= 15% x 80

= `(15)/(100) xx 80`
= Rs 12
Dividend on face value of Rs. 100 = Rs. 12
Rate of dividend = 12%.