₹100 shares of a company are sold at a discount of ₹20. If the return on the  investment is 15%, find the rate of dividend declared

12%

The correct answer is option (1) : 12%

M.V of 1 share of $₹100= ₹(100-20) = ₹ 80$

Given rate of return $= 15$%

Let the rate of dividend declared be x % then dividend on 1 share of ₹ 100= x% of ₹ 100 = ₹ x

$∴15=\frac{x}{80}×100⇒x=12$

Hence, the rate of dividend = 12%