Question

200 ₹ 20 shares, each available at a discount of 20%, give 10% dividend. The rate of return is ______.

पर्याय

• 12.5%

• 15%

• 16%

• 25%

Answer 1

200 ₹ 20 shares, each available at a discount of 20%, give 10% dividend. The rate of return is 12.5%.

Explanation:

F.V of one share = ₹ 20

M.V of one share = ₹ 20 – 20% of ₹ 20

= `₹(20 - 20/100 xx 20)`

= ₹ 20 – 4

= ₹ 16

Thus, M.V of 200 shares = 200 × 16 = ₹ 3200

Rate of dividend = 10%

Dividend on one share = 10% of ₹ 20 = ₹ 2

Total dividend on 200 shares = 200 × 2 = 400

∴ Rate of return = `"Total Dividend"/"Total Investment" xx 100`

= `400/3200 xx 100`

= 12.5%