#### Question

Rs 50 shares of a company are quoted at a discount of 10%. Find the rate of dividend given by the company, the return on the investment on these shares being 20 per cent.

#### Solution

Nominal value of 1 share = Rs 50

Market value of 1 share = Rs 50 – 10% of Rs 50

= Rs 50 – Rs 5 = Rs 45

Profit % on investment = 20%

Then profit on 1 share = 20% of Rs 45 = Rs 9

∴ Dividend% = 9/50 × 100% = 18%

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Solution Rs 50 Shares of a Company Are Quoted at a Discount of 10%. Find the Rate of Dividend Given by the Company, the Return on the Investment on These Shares Being 20 per Cent. Concept: Shares and Dividends.