Stocks and Shares Practice Test 2

Question : 6 of 36

Marks: +1, -0

Raghav brought 50 shares of Rs 25 at 10 discount, Find the rate of interest if the dividend is

12 1/2%

Solution:

Face value of 50 shares = 50 × 25 = Rs 1,250
Annual income =

12.5/100× 1,250

= Rs 156.25
Total investment = 50 × (25 - 10) = Rs 750
Rate of interest on investment

=156.25/750×100= 20 5/6%

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