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Mathematics

100 shares are bought at ₹ 60 per share and the dividend received is ₹ 600.

Statement (1) : Rate of return x ₹ 60 x 100 = ₹ 600

Statement (2) : Rate of return x Market value = Dividend received on each share

  1. Both the statements are true.

  2. Both the statements are false.

  3. Statement 1 is true, and statement 2 is false.

  4. Statement 1 is false, and statement 2 is true.

Shares & Dividends

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Answer

Both the statements are true.

Reason

Number of shares bought = 100

Price per share = ₹60

Total dividend received = ₹600

Rate of return = Annual incomeInvestment\dfrac{\text{Annual income}}{\text{Investment}}

= Annual incomeNo. of shares×price per share\dfrac{\text{Annual income}}{\text{No. of shares} \times \text{price per share}}

⇒ Rate of return = 600100×60\dfrac{600}{100 \times 60}

⇒ Rate of return x 60 x 100 = 600

So, statement 1 is true.

Rate of return = Annual incomeNo. of shares×price per share\dfrac{\text{Annual income}}{\text{No. of shares} \times \text{price per share}}

⇒ Rate of return x Price per share = Annual incomeNo. of shares\dfrac{\text{Annual income}}{\text{No. of shares}}

⇒ Rate of return x Market value = Dividend received on each share

So, statement 2 is true.

Hence, option 1 is correct.

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