his percentage return on his investment.

Open in App

Solution

Sum invested=Rs.11200
Market value of each share=Rs.140
Nominal value of 1 share=Rs.100
Div=6%
$∴$ No.of shares $= \frac{S u m i n v e s t e d}{M . V o f 1 s h a r e} = \frac{11200}{140} = 80$

Annual Dividend=No.of shares $\times$ N.V of 1 share $\times$ Div
$\Rightarrow 80 \times 100 \times \frac{6}{100} = R s .480$
% Return $= \frac{i n c o m e}{i n v e s t m e n t} \times 100$ %
$\Rightarrow \frac{480}{11200} \times 100 = 4.28$ %

Suggest Corrections

Similar questions

Q. the percentage change in his return on her original investment.

Mannan buys 400, twenty rupee shares at a premium of Rs 4 each and receives a dividend of 12%. Find:

i) Amount invested by him

ii) Total income

iii) His percentage return on his investment.

Q. percentage return on his money.

John invests ₹7,200 in MojoRojo Inc, paying 10% per annum when its ₹20 shares can be bought for ₹16. His annual income, and percentage return on his investment are respectively ____.

A man invests Rs 11,200 in a company paying 6 percent per annum when its Rs 100 shares can be bought for Rs 140. Find :

(i) his annual dividend.

(ii) his percentage return on his investment.

Join BYJU'S Learning Program

his percentage return on his investment.

Sum invested=Rs.11200Market value of each share=Rs.140Nominal value of 1 share=Rs.100Div=6%∴No.of shares=Sum investedM.V of 1 share=11200140=80Annual Dividend=No.of shares×N.V of 1 share×Div⇒80×100×6100=Rs.480% Return=incomeinvestment×100%⇒48011200×100=4.28%