Question

Mr Santosh purchased $25$ shares of a company of FV $Rs50$ at MV $Rs56$. The company declared $9\%$ dividend. After receiving dividend, he sold the shares at MV $Rs52$.He paid brokerage at the rate $0.5\%$ for transaction. What is his profit or loss in this transaction?

Answer 1

Earning from sell $=(56-52)\ast 25=100$

Earning from dividend $=9\ast 50\ast 25/100=112.50$

Brokerage $=(52+56)\ast 25\ast .5/100=13.50$

Total profit $=(100+112.5)-13.50=199.00$