Question

A man invests a sum of money in Rs.100 shares, paying 15% dividend quoted at 20% premium. If his annual dividend is Rs.540, calculate the rate of return on his investment?

• A. 12.5%
• B. 13.5%
• C. 14.5%
• D. 15.5%
• E. 16.5%

Answer 1

The correct option is A

12.5%