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Question
Salim bought 800 shares of face value ₹ 50 at ₹ 60 per share. The company declared a dividend of 12%. The percentage return on his investment is ______.
Options
10%
12%
14.4%
15%
MCQ
Fill in the Blanks
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Solution
Salim bought 800 shares of face value ₹ 50 at ₹ 60 per share. The company declared a dividend of 12%. The percentage return on his investment is 10%.
Explanation:
Given:
Number of shares = 800
Face value per share = ₹ 50
Market price (cost) per share = ₹ 60
Dividend declared = 12%
Investment = 800 × ₹ 60
= ₹ 48,000
Dividend = 12% of ₹ 50
= ₹ 6
Income = 800 × ₹ 6
= ₹ 4,800
Return % `= (4800/48000)xx100`
= 10%
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