A man purchased 400 shares of the face value of Tk. 100 each from the market at Tk. 125 per share. If a dividend of 20% is declared, find his earning percent on the investment.

Question: A man purchased 400 shares of the face value of Tk. 100 each from the market at Tk. 125 per share. If a dividend of 20% is declared, find his earning percent on the investment.

Solution:
Given,
Price of 1 share = Tk. 125.
∴ Price of 400 share = Tk. (125 × 400)
= Tk. 50000

Dividend per share=20% of 100 = Tk. 20
∴ Total dividend income = 400 × 20 = Tk. 8000

∴ Earning % = (Dividend/Market Price​) × 100
=(8000/50000) × 100
= 16%.