A man invests Rs. 22500 in Rs 50 shares available at 10% discount. If the dividend paid by the company is 12%, calculate:

1) the number of share purchased

2) the annual dividend recieved

3) the rate of return he gets on his investment

Asked by kadtej83 | 10th Jul, 2019, 07:34: PM

Expert Answer:

Investment = Rs. 22500

FV = Rs. 50

MV= 50 - 10/100 × 50 =  45Rs

Number of shares = 22500/45 = 500 shares

Divident on 1 share = 12/100 × 50 = 6 rs

Total divident = 6 × 500 = 3000 Rs.

Rate of return = total divident/ investment × 100

=3000/22500 × 100 = 13.33%

Answered by Arun | 11th Jul, 2019, 05:47: PM