Multiple choice

Mr Ravi had invested Rs. 52,000 in 18% Rs. 200 shares at a premium of 30%. Which of the following is the percentage return on Mr Ravi's investment?

  1. 11.85%

  2. 12.85%

  3. 3.85%

  4. 13.85%

  5. 14.85%
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Percentage Return = (Total income/Total investment) x 100 Face value(F.V) of the share = Rs. 200 Market value of the share = 130% of Rs. 200 = Rs. 260 Total number of shares = Invested sum/Market value of the share = Rs. 52,000/260 = 200 shares Total Income = F.V of the share X Number of shares X rate of dividend = 200 x 200 x 18/100 = Rs. 7,200 Percentage return = (7,200/52,000) x 100 = 13.85%

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