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50 shares of face value ₹ 10 were purchased for market value of ₹ 25. Company declared 30% dividend on the shares, then find :(1) Sum invested(2) Dividend received(3) Rate of return.

Q.3 (B)(iii) 50 shares of face value ₹ 10 were purchased for market value of ₹ 25. Company declared 30% dividend on the shares, then find :

(1) Sum invested

(2) Dividend received

(3) Rate of return.

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Best answer

Answer: Sum invested = ₹ 1250, dividend received = ₹ 150, rate of return = 12%

Number of shares = 50, FV = ₹ 10, MV = ₹ 25.

(1) Sum invested \(= 50 \times 25 = ₹ 1250\).

(2) Dividend is paid on the face value: total FV \(= 50 \times 10 = ₹ 500\), so dividend \(= \dfrac{30}{100} \times 500 = ₹ 150\).

(3) Rate of return \(= \dfrac{\text{dividend}}{\text{sum invested}} \times 100 = \dfrac{150}{1250} \times 100 = 12\%\).

Doubtly AI · 25 Oct 2026 AI-verified · Oct 2026 Report
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