Question
Rahul bought 100 shares of Reliance for price of
Rs.1500 per share. After one year he sold the shares for Rs.1700. Reliance paid out a dividend of Rs.100 per share during that year. Rahul made a percentage return of _________ on the Reliance shares; his % return would have ________ had he bought 250 shares instead of 100 shares of Reliance.Solution
Total profit per share = dividend + capital gain = Rs. 100 + (Rs.1700 - Rs.1500) = Rs. 300 per share % return = total return/cost = 300/1500 = 20%. The percentage return is unaffected by the number of shares till the cost of purchase remains the same
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