A man bought 20 shares of Rs. 50 at Rs. 5 discount; the dividend rate is 13½%. What is the yield (rate of interest) on his investment?

Given data

• Face value per share = Rs. 50; purchase price = Rs. 45 (Rs. 5 discount).
• Dividend rate = 13.5% on face value ⇒ dividend per share = 0.135 × 50 = Rs. 6.75.

Concept / Approach

• Yield (%) = (dividend per share / market price) × 100.

Step-by-step calculationYield = (6.75 / 45) × 100 = 15%

Notes

• The number of shares (20) cancels when computing percentage yield.

Final Answer15%