Rate of Return

Q.

A person sells Rs. 2, 400 of 6% stock at 80 and invests the proceeds in 8% stock at 96. Find the change in his dividend income.

Q. If the face value of both the shares is the same, then which investment out of the following is more profitable ?
Company A : dividend $16\%$, MV $=₹80$, Company B : dividend $20\%$, MV $=₹110$.

1. A
2. B
3. Both
4. None of the above

Q. Mr. Harisha has purchased 150 shares of FV ₹100 , for MV ₹140. Company has paid dividend at 8%. Find the rate of return on his investment.

1. 5.71%
2. 5.56%
3. 5.02%
4. 6.2%

Q. Aman purchased a share of FV ₹200 for MV of ₹240. Company declared 12% Dividend on the share. Find the rate of return.

1. 12.5%
2. 10%
3. 15%
4. 8.75%

Q.

A man buys shares of nominal value ₹84 in a company, which pays 20% dividend. He buys the shares at such a price that his profit is 14% on his investment. At what price did he buy the shares?

1. ₹120
2. ₹140
3. ₹100
4. ₹160

Q. Mr. Saurabh purchased 80 shares of FV ₹60 at a premium of ₹20. If the company is paying 15% dividend, then the rate of return on investment is .

1. $10.75\%$
2. $10.25\%$
3. $12.25\%$
4. $11.25\%$

Q. Mr. Saurabh purchased 80 shares of FV ₹60 at a premium of ₹20. If the company is paying 15% dividend , find the rate of return.

1. 11.25%
2. 10.75%
3. 13.5%
4. 12.25%

Q.

Salman invests a sum of money in $₹50$ shares, paying $15\%$ dividend quoted at $20\%$ premium. If his annual dividend is $₹600$, then calculate
(i) the number of shares, he bought.
(ii) his total investment.
(iii) the rate of return on his investment.

Q. Manikanta bought 100 shares whose nominal value is ₹ 20 and the market value is ₹ 10. He gets a dividend of 8% on it , then his annual income is

1. ₹ 160
2. ₹ 100
3. ₹ 80

Q. Ashok and Sandeep invested Rs 18000 each in buying shares of two different companies, Ashok buys 7.5%. Rs 100 share at a discount of 20%, whereas Sandeep buys Rs 50 share at a premium of 20%. If both receive equal dividend at the end of the year, then find the rate of dividend received by Sandeep.

Q. Mr.Harshal purchased $520$ shares of Face Value $₹10$ when the Market value of the share was $₹35$. Company had given a $20\%$ dividend. The rate of return on investment is _____.

1. $0.571\%$
2. $2\%$
3. $5.71\%$
4. $20\%$

Q. If 40 shares of FV ₹80 were purchased for MV ₹100, and the company declared 25% dividend on shares, find the Rate of return.

1. 30%
2. 25%
3. 20%
4. 18%

Q. Mr. Saurabh purchased 80 shares of FV ₹60 at a premium of ₹20. If the company is paying 15% dividend, then find the rate of return on investment.

Q.

A company with 10000 shares of ₹ 100 each, declares an annual dividend of 5 %

(i) What is the total amount of dividend paid by the company

(ii) What would be the annual income of a man, who has 72 shares , in the company

(iii) If he received only 4 % on his investment , find the price he paid for each share

Q.

Shubendhu owns 560 shares of a company. The face value of each share is ₹25. The company declares a dividend of $9\%$. Calculate:

(i) The dividend that Shubendhu will get.

(ii) The rate of interest on his investment if Shubendhu had paid ₹30 for each share.

Q.

A man invests ₹ 8000 in buying shares of a company of face value of rupees hundred each at a premium of 10%. If he earns ₹ 1200 at the end of the year as dividend, then find the i) number of shares he has in company and ii) dividend percent per share

1. 110 & 8% respectively

2. 90 & 12% respectively

3. 120 & 15% respectively

4. 80 & 15% respectively

Q.

Find the dividend due at the end of a year on 500 shares of ₹ 75 each, if half-yearly dividend is 4%

1. ₹ 3000

2. ₹ 2500

3. ₹ 2000

4. ₹ 1500

Q.

Rakesh invested ₹15000 in shares of a company paying 6% dividend per annum. If he bought ₹50 share for ₹75 each. His income from the investment will be

1. ₹ 1000
2. ₹ 750
3. ₹600
4. ₹800

Q.

Ms. Shriya invested some amount buying $₹150$ shares of a company which pays dividend at the rate of $8\%$ per annum. If she gets back $10\%$ per annum on his investment, then the value at which she bought the share, is

1. $₹100$

2. $₹120$

3. $₹180$

4. $₹210$