₹ 25 shares of a company are selling at ₹ 20. If the company is paying a dividend of 12%, then the rate of return is ______.

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₹ 25 shares of a company are selling at ₹ 20. If the company is paying a dividend of 12%, then the rate of return is 15%. Explanation: F.V. of each share = ₹ 25 M.V. = ₹ 20 Rate of dividend = 12% Dividend on each share = (12)/(100) xx 25 = ₹ 3 Return on ₹ 20 = ₹ 3 And on ₹ 100 = ₹ (3)/(20) xx 100 = 15%.

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