Question

Maggie invests ₹9600 on ₹100 shares at ₹80. If the company pays her $18\%$ dividend then what is her percentage return?

• A. $22.5\%$
• B. $12.5\%$
• C. $10\%$
• D. $25\%$

Answer 1

The correct option is A

$22.5\%$

Number of shares bought = $\frac{9600}{80}$ = 120

Dividend = $18\%$ of total face value $\times$ no.of shares

= $\frac{18}{100}$ $\times$ 100 $\times$ 120 = ₹2160

Therefore percentage return = $\frac{\text{Dividend}}{\text{Investment}}\times 100=\frac{2160}{9600}\times 100=22.5\%$