A share of face value ₹ 10 is bought at a market value of ₹ 60. The company declares a dividend of 25%. The rate of return is (approximately)
A. 4.17%
B. 25%
C. 15%
D. 6%
A. 4.17%
B. 25%
C. 15%
D. 6%
Best answer
Answer: A. 4.17%
Dividend per share \(= 25\% \times 10 = ₹ 2.50\). Rate of return \(= \frac{2.5}{60} \times 100 \approx 4.17\%\).
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