Question

Shri Maniklal has purchased 300 shares of F.V. ₹ 100 for M.V. ₹ 120. Company has paid dividend at 7%. Complete the following activity to find the rate of return on his investment.

Activity:

F.V. = ₹ 100

Number of shares = 300

Market value = ₹ 120

(a) Sum invested = M.V. × No. of shares

= `square xx square`

= ₹ 36,000

(b) Dividend per share = F.V. × rate of dividend 

= `square xx square/100`

= ₹ 7

∴ Total dividend received = 300 × 7

= ₹ `square`

(c) Rate of return = `"Dividend income"/"Sum invested" xx 100`

= `(2,100)/(36,000) xx 100`

= `square` %

Answer 1

Given:

F.V. = ₹ 100

Number of shares = 300

Market value = ₹ 120

(a) Sum invested = M.V. × No. of shares

= \[\boxed{120}\] × \[\boxed{300}\]

= ₹ 36,000

(b) Dividend per share = F.V. × rate of dividend

= \[\boxed{100}\] × \[\frac{\boxed7}{100}\]

= ₹ 7

∴ Total dividend received = 300 × 7

= ₹ \[\boxed{2,100}\]

(c) Rate of return = `"Dividend income"/"Sum invested" xx 100`

= `(2,100)/(36,000) xx 100`

= \[\boxed{5.83}\] %