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    Question

    An investor buys 240 shares of

    face value ₹10 each at ₹160 per share. The broker charges 1% brokerage on the purchase. The company declares a 250% dividend on face value. Find the investor’s net dividend yield (%).
    A 23.22% Correct Answer Incorrect Answer
    B 15.47% Correct Answer Incorrect Answer
    C 27.22% Correct Answer Incorrect Answer
    D 5.33% Correct Answer Incorrect Answer

    Solution

    ATQ,

    Investment (before brokerage) = 240 × 160 = ₹38,400 Brokerage = 1% of 38,400 = ₹384 Total investment = ₹38,784 Dividend per share = 250% of ₹10 = ₹25 Total dividend = 240 × 25 = ₹6,000 Net dividend yield = (6,000 / 38,784) × 100 = 15.47%

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