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Question
Mr.Amol purchased 50 shares of Face Value Rs100 when the Market value of the share was Rs 80. Company had given 20% dividend. Find the rate of return on investment.
Solution
FV = Rs 100
MV = Rs 80
Number of shares purchased = 50
Sum invested = Number of shares purchased × MV of each share = 50 × 80 = Rs 4,000
Dividend received on each share = 20% of FV of each share = 20% of Rs 100 = \[\frac{20}{100} \times 100\] = Rs 20
Total dividend received = Number of shares purchased × Dividend received on each share = 50 × 20 = Rs 1,000
∴ Rate of return on investment = \[\frac{\text{ Total dividend received } }{\text{ Sum invested} } \] 100 % = \[ \frac{1000}{4000} \] × 100 = 25 %
Thus, the rate of return on investment is 25%.
RELATED QUESTIONS
Complete the following table by writting suitable numbers and words.
| Sr.No | FV | Share is at | MV |
| (1) | Rs 100 | par | ... |
| (2) | ... | premium Rs 500 | Rs 575 |
| (3) | Rs 10 | ... | Rs 5 |
Joseph purchased following shares, Find his total investment.
| Company A : 200 shares, | FV = Rs 2 | Premium = Rs 18 |
| Company B : 45 shares, | MV = Rs 500 | |
| Company C : 1 share, | MV = Rs 10,540. |
If the face value of both the shares is same, then which investment out of the following is more profitable?
Company A : dividend 16%, MV = ₹ 80, Company B : dividend 20%, MV = ₹ 120.
Market value of a share is Rs 200. If the brokerage rate is 0.3% then find the purchase value of the share.
Write the correct alternative for the following questions.
If the Face Value of a share is Rs 100 and Market value is Rs 75, then which of the following statements is correct ?
Write the correct alternative for the following questions.
What is the amount of dividend received per share of face value Rs 10 and dividend declared is 50%.
Find the purchase price of a share of FV Rs 100 if it is at premium of Rs 30. The brokerage rate is 0.3%.
Prashant bought 50 shares of FV Rs 100, having MV Rs 180. Company gave 40% dividend on the shares. Find the rate of return on investment.
Find the amount received when 300 shares of FV Rs 100, were sold at a discount of Rs 30.
Find the number of shares received when Rs 60,000 was invested in the shares of FV Rs 100 and MV Rs 120.
Market value of shares and dividend declared by the two companies is given below. Face Value is same and it is Rs. 100 for both the shares. Investment in which company is more profitable ?
(1) Company A - Rs 132, 12%
(2) Company B - Rs 144, 16%
Sangeeta’s monthly income is Rs. 25,000. She spent 90% of her income and donated 3% for socially useful causes. How much money did she save ?
Shri Shantilal has purchased 150 shares of FV ₹ 100, for MV of ₹ 120, Company has paid dividend at 7%, then to find the rate of return on his investment, complete the following activity:
Solution: FV = ₹ 100; Number of shares = 150
Market value = ₹ 120
1. Sum investment = MV × No. of Shares
= `square xx square`
∴ Sum investment = ₹ 18,000
2. Dividend per share = FV × Rate of dividend
= `square xx square/100`
= ₹ 7
∴ Total dividend received = 150 × 7
= `square`
3. Rate of return = `"Dividend income"/"Sum inve ted" xx 100`
= `1050/18000 xx 100`
= `square`
