A person buys 1000 shares of a company (book value ₹10, paid up ₹5) at ₹50. If the company declares a dividend of 30%, then the percentage gain earned by the person on his investment is :

3%

The correct answer is Option (2) → 3%

Initial investment = $1000×50$

$=50,000$

Dividend per share = $30\%×5=1.5$ per share

Total dividend = $1000×1.5=1500$

∴ Percentage gain = $\frac{Total\,Dividend}{Initial\,Investment}×100$

$=\frac{1500}{50,000}×100=3\%$