Question

You invested 2000 equity shares at initial price of 2.100 RO per share the equity share (stock) paid a dividend of 0.150 baiza per share during the following year and this year prize at the end of the year was 2.000 per share compute total return on this investment

Answer 1

Dear Student,

An investment in shares may have two type of incomes, (1) Dividend Income and (2) Capital Appreciation

Dividend Income = 2000 shares x 0.15 per share = 300 RO

Initial Investment = 2000 shares x Purchase price per share = 2000 x 2.10 = 4200 RO

Value of Investment at year end = 2000 shares x closing price of share = 2000 x 2 = 4000 RO

Capital Appreciation = 4000 - 4200 = - 200 (Loss)

Total Return = 300 - 200 = 100 RO

Return on investment (%) = Return / Initial Investment = 100 / 4200 = 2.38%

Dear Student,

There is confusion is question, dividend is 0.15 baiza. I dont have knowledge of RO and baiza. I request you change solution by changing numarics. A student who knows concept can do anything.

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