Question
A man buys 80 shares of ₹100 each at ₹120 and
receives a dividend of 12% at the end of the year. Find: (i) his total income from dividends, and (ii) his yield (percentage return) on investment.Solution
ATQ,
Face value of one share = ₹100 Dividend = 12% of ₹100 = ₹12 per share (a) Total income: = 80 × ₹12 = ₹960 (b) Investment: = 80 × ₹120 = ₹9600 Yield % = (Income / Investment) × 100 = (960 / 9600) × 100 = 10% Final Answers: (a) Dividend income = ₹960 (b) Yield = 10%
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