Q)  A man buys 250, ten-rupee shares each at 12.50. If the rate of dividend is 7%, find the:
(a) dividend he receives annually
(b) percentage return on his investment

ICSE Specimen Question Paper (SQP)2025

Ans: 

a) Annual Dividend:

Total Number of shares purchased = 250

Face value of each share = Rs. 10

∵ Dividend = Number of shares x face value / share x Dividend %

= 250 x 10 x 7%

= Rs. 175

Therefore, the dividend earned is Rs. 175

(b) % ROI:

Money invested per share  = Rs. 12.50

∴ Total investment = Number of shares x Cost per share

= 250 x 12.50

= 3125

Since the dividend earned = Rs. 175

∴ % ROI  =

=

=

=

= 5.6 %

Therefore, the % ROI is 5.6%

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