A man bought 200 shares each of face value Rs. 10 at Rs. 12 per share. At the end of the year, the company from which he bought the shares declares a dividend of $15 \%$. Calculatethe percentage return on his outlay.
Explanation
To calculate the percentage return on his outlay, we need to find the total value of the shares and then find the percentage increase in value. The total value of the shares is 200 * 12 = Rs. 2400. The dividend received is Rs. 360. The percentage return on his outlay is (360/2400) * 100 = 15%. However, this is the dividend percentage, not the return on investment. To find the return on investment, we need to find the difference between the selling price and the cost price, which is 12 - 10 = 2. Then, the percentage return on investment is (2/12) * 100 = 16.67%. However, this is the return on investment for one share. To find the return on investment for 200 shares, we need to multiply it by 200, which is 16.67 * 200 = 3333.33%. But this is not the correct answer. The correct answer is the percentage return on investment for one share, which is 16.67%.
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