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Question no. 56205

Calculate the return on 88 shares valued at Rs. 25 each with a 5 premium, (1/4) brokerage per share, and a 7(1/2)% annual dividend.

Select your answer for: Calculate the return on 88 shares valued at Rs. 25 each with a 5 premium, (1/4) brokerage per share, and a 7(1/2)% annual dividend.
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Answer: B. 165

Explanation

Calculating the total investment requires factoring the share face value, premium, and brokerage fee per share. Eighty eight shares purchased with premium and brokerage establish the total invested capital base. Taking a seven point five percent annual dividend on the share face value gives a total return of one sixty five. Share investments include face value, market premiums, discounts, and broker transaction commissions. Dividend returns are always calculated strictly using the nominal face value of the corporate shares. Financial accounting principles require aggregating all acquisition costs when evaluating share yields.

Stock exchange transactions involve brokerage fees and share premiums that impact overall investment returns. Dividend income tracking requires separating nominal face value yields from actual market purchase costs. Portfolio management software calculates net yields by factoring commission expenses into stock returns. Option A underestimates the annual return by miscalculating the dividend percentage on face value. Option C overestimates the return due to an error in the brokerage or premium inclusion step. Option D results from an incorrect arithmetic multiplication of the total share dividend payout.

Subject
Mathematics
Category
Mathematics
Topic
—
Difficulty
medium

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