Mathematics
Hundred rupee shares of a company are available in the market at a premium of ₹ 20. Find the rate of dividend given by the company when a man's return on his investment is 15 percent.
Shares & Dividends
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Answer
We know that,
Rate of dividend × N.V. = Profit (return) % × M.V.
Market value = ₹ 100 + ₹ 20 = ₹ 120.
Let rate of dividend be x%
Hence, rate of dividend = 18%.
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