₹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
Answer & explanation
Correct answer: option 1
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%