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₹ 25 shares of a company are selling at ₹ 20. If the company is paying a dividend of 12%, then the rate of return is - Mathematics

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Question

₹ 25 shares of a company are selling at ₹ 20. If the company is paying a dividend of 12%, then the rate of return is

Options

  • 10%

  • 12%

  • 15%

  • 18%

MCQ

Solution

F.V. of each share = ₹ 25,
M.V. = ₹ 20
Rate of dividend = 12%

DIvidend on each share = `(12)/(100) xx 25` = ₹ 3
Return on ₹ 20 = ₹ 3

and on ₹ 100 = ₹ `(3)/(20) xx (5)/(100)` = 15%.

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Chapter 3: Shares and Dividends - Multiple Choice Question

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ML Aggarwal Understanding ICSE Mathematics [English] Class 10
Chapter 3 Shares and Dividends
Multiple Choice Question | Q 7

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