Can we use the formula ---        Face value * dividend% = Market Value * return%        (during Board exams)

A man buys rupees 50 shares of a company which pays 12% dividend he buys the seat search a price that his profit is 15% on his investment.


Is 15% also the return % in this question?

Asked by arpitt682 | 24th Aug, 2019, 12:50: PM

Expert Answer:

You can use the formula only if no other details are provided.
Else you have to follow the usual steps.
 
15% is the rate of return, which is also profit on investment.

Answered by Arun | 30th Aug, 2019, 09:36: AM