A man buys 250, ten-rupee shares each at ₹12.50. If the rate of dividend is 7%, find the :

(a) Nominal Value of 1 share = ₹10

Market Value of 1 share = ₹12.50

Number of shares purchased = 250

Nominal Value of 250 shares = 250 x 10 = ₹2500

Rate of dividend = 7%

∴ Dividend received = 7% of 2500

= $\frac{7}{100} \times 2500$

= ₹175.

Hence, annual dividend = ₹175.

(b) Amount Invested = No. of shares x Market Value

= 250 x 12.50

= ₹3125

$$\begin{aligned}\text{Return percentage } = \frac{\text{Dividend received}}{\text{Investment}} \times 100 \\[1em] = \frac{175}{3125} \times 100 \\[1em] = \frac{17500}{3125} \\[1em] = 5.6%.\end{aligned}$$

Hence, return percentage = 5.6%.