Chapter: Financial Planning· Mathematics Part 1 (Algebra)

Ramesh wants a rate of return of 10% on shares of FV ₹ 100 which he can buy at MV ₹ 150. What rate of dividend must the company declare? If he buys 40 such shares, what dividend will he get?

Q.24 Ramesh wants a rate of return of 10% on shares of FV ₹ 100 which he can buy at MV ₹ 150. What rate of dividend must the company declare? If he buys 40 such shares, what dividend will he get?

Doubtly Asked 29 Oct 2026 Practice test ssc 10th Save WhatsApp Report

1 answer

Best answer

Answer: Rate of dividend = 15%; dividend on 40 shares = ₹ 600

Rate of return = \(\dfrac{\text{dividend per share}}{\text{MV}} \times 100\)

\(10 = \dfrac{d}{150} \times 100 \Rightarrow d = 15\), so dividend per share = ₹ 15.

Rate of dividend = \(\dfrac{15}{100} \times 100 = 15\%\) (on FV ₹ 100)

Dividend on 40 shares = 40 × 15 = ₹ 600

Doubtly AI · 29 Oct 2026 AI-verified · Nov 2026 Report

Was this answer helpful?

Ramesh wants a rate of return of 10% on shares of FV ₹ 100 which he can buy at MV ₹ 150. What rate of dividend must the company declare? If he buys 40 such shares, what dividend will he get?

1 answer

Your answer