Hundred rupee shares of a company are available in the market at a premium of Rs 20. Find the rate of dividend given by the company, when a man’s return on his investment is 15%.

Home » Hundred rupee shares of a company are available in the market at a premium of Rs 20. Find the rate of dividend given by the company, when a man’s return on his investment is 15%.

Hundred rupee shares of a company are available in the market at a premium of Rs 20. Find the rate of dividend given by the company, when a man’s return on his investment is 15%.

Given,

Nominal worth of

$1\text{ }offer\text{ }=\text{ }Rs\text{ }100$

Furthermore, the market worth of

$=\text{ }Rs100\text{ }+\text{ }Rs\text{ }20\text{ }=\text{ }Rs120$

(as the premium is Rs 20)

Likewise given, the benefit

$percent$

on venture of

$1\text{ }offer\text{ }=\text{ }15percent$

Then, at that point, benefit

$=\text{ }15percent\text{ }of\text{ }Rs\text{ }120\text{ }=\text{ }Rs\text{ }18$

Thus,

Profit

$percent\text{ }=\text{ }18/100\text{ }x\text{ }100\text{ }=\text{ }18percent$

i

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