Question

The face value of a share is $Rs.100$. Aakash purchased 25 shares when its market value was $Rs.70$. In the year, the company declared $20\%$ divided. Find the rate of return Aakash got on his investment.

Answer 1

Given that,

Face value of share$=Rs.100$

Market value of share$Rs.750$

$\therefore$ Total amount invested $=25\times 70=Rs.1750$

Dividend $=20$%

$\therefore$ Total divided on $25$ shares$=20\times 25=Rs.1500$

Now,

Rate of return$=\frac{totaldivided}{suminvested}\times 100$

$=\frac{500}{1750}\times 100$

$28.57$%

Then,

We get $28.57$%