Question
Sumit bought 200 shares of SBI for price of Rs.230 per
share. After one year he sold the shares for Rs.270. What is the earning in percentage terms, if Sumit got a dividend of Rs.10 per share.Solution
Profit on dividend = 200 x10 = 2000 Profit by sale of shares = (Sale price- buy price) x Number of shares = (270-230) x 200 = 8,000 Amount invested = 230 x 200 = 46,000 Profit % = (2000+8000)/46,000= 21.74%
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