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LoginMr. Amol purchased 50 shares of face Value Rs. 100 when the market value of the share was Rs. 80.Company had given 20% dividend. Find the rate ofreturn of investment .
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1 year ago
MATHSMr.Amol purchase 50 shares of FACE value 100 when the Market value of the share was 80. COMPANY had GIVEN 20% dividend. Find the rate of return on investment.December 26, 2019avatarYugal TanejaSHAREANSWERFV=Rs.100MV=Rs.80Number of shares purchased =50Sum INVESTED = Number of shares purchased × MV of each share =50×80=Rs.4,000Dividend received on each share =20 % of FV of each share =20% of Rs. 100 = 10020 ×100=Rs.20Total dividend received = Number of shares purchased × Dividend received on each share =50×20=Rs.1000∴ Rate of return on investment = Sum−investedTotal−dividend−received ×100% = 40001000 ×100% =25%Thus, the rate of return on investment is 25%
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