A man buys Rs 20 share at a premium of Rs 10 share. If the company pays $9 %$ dividend, find the percentage return on his investment in buying 200 shares.

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Solution

The correct option is A
6%

Investment on 1 share = Rs (20 + 10) = Rs 30

Investment in buying 200 shares = Rs $(200 \times 30)$ = Rs 6000

Rate of dividend = $9 %$

Income on 1 share $= 9 % o f R s 20 = (\frac{9}{100} \times 20) = R s \frac{18}{10}$

Income on 200 shares $= R s (200 \times \frac{18}{10}) = R s 360$

Therefore percentage return on his investment $= \frac{T o t a l i n c o m e}{T o t a l i n v e s t m e n t} \times 100$

$= (\frac{360}{6000} \times 100) % = 6 %$

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A man buys Rs 20 share at a premium of Rs 10 share. If the company pays 9% dividend, find the percentage return on his investment in buying 200 shares.

A man buys Rs 20 share at a premium of Rs 10 share. If the company pays $9 %$ dividend, find the percentage return on his investment in buying 200 shares.