Answer

Verified

402.3k+ views

**Hint:**The question is related to shares and dividend. Let the nominal value of the share is 100 and solve the question with the help of the nominal value. Use the formula of return of investment that is $\% {\text{ return = }}\dfrac{{income}}{{investment}} \times 100$.

**Complete step-by-step answer:**

Given that

Number of shares = 90

Nominal value of each share = 100

Rate of dividend = 8%

So, the dividend received by the Ramesh is = $8\% {\text{0f}}100 \times 90$

$ = \dfrac{8}{{100}} \times 100 \times 90$

By solving the above equation, we get

$ = 720$

$\% {\text{ return = }}\dfrac{{income}}{{investment}} \times 100$

First, we have to find the income

${\text{income = No}}{\text{.of share }} \times {\text{ rate of dividend }} \times {\text{nominal value }}$

Put the values in the formula

$income = 90 \times \dfrac{8}{{100}} \times 100$

$ = Rs.720$

Now we have to find the investment

${\text{investment = no}}{\text{.of share}} \times {\text{ market value of 1 share }}$

Put the values in the formula

$investment = 90 \times 150$

$ = 13500$

$\% {\text{ return = }}\dfrac{{income}}{{investment}} \times 100$

Put the values in the above formula

$ = \dfrac{{720}}{{13500}} \times 100$

Solve the above equation. Cancel the numerator by denominator

=$5\dfrac{1}{3}\% $

**Hence the percentage of return on investment is $5\dfrac{1}{3}\% $.**

**Note:**Students here get confused between the investment and the income as they put the same value in both places. Solve the question step by step. The most important part is the student must know the difference between the nominal value and the real value of the share. Here the percentage of the return on investment is in mixed fraction. A dividend is a distribution of profits by a corporation to its shareholders. When a corporation earns a profit or surplus, it is able to pay a proportion of the profit as a dividend to shareholders.

Recently Updated Pages

The base of a right prism is a pentagon whose sides class 10 maths CBSE

A die is thrown Find the probability that the number class 10 maths CBSE

A mans age is six times the age of his son In six years class 10 maths CBSE

A started a business with Rs 21000 and is joined afterwards class 10 maths CBSE

Aasifbhai bought a refrigerator at Rs 10000 After some class 10 maths CBSE

Give a brief history of the mathematician Pythagoras class 10 maths CBSE

Trending doubts

Difference Between Plant Cell and Animal Cell

Give 10 examples for herbs , shrubs , climbers , creepers

Difference between Prokaryotic cell and Eukaryotic class 11 biology CBSE

Fill the blanks with the suitable prepositions 1 The class 9 english CBSE

Name 10 Living and Non living things class 9 biology CBSE

Select the word that is correctly spelled a Twelveth class 10 english CBSE

Change the following sentences into negative and interrogative class 10 english CBSE

Write a letter to the principal requesting him to grant class 10 english CBSE

Write the 6 fundamental rights of India and explain in detail