Question

Shriyash purchased a share of FV Rs $100$ for MV of Rs $120$. Company declared $15\%$ dividend on the share. If the rate of return (in percent) is $x$ then what is the value of $2x$?

Answer 1

Face Value $=100$

Market Value $=120$

The dividend on the share $=15\%$ of its FV $=\frac{15}{100}\times 100=15$

Rate of return $=x=\frac{15}{120}\times 100$ $(\because$ Rate of return $=\frac{Income}{Investment}\times 100)$

$\Rightarrow 2x=\frac{3000}{120}=25\%$