Here is mistake in your solution just ready the question again you'll have to skip the step of calculating dividends.
On Thu, Oct 27, 2011 at 12:38 AM, MUHAMMAD SARIM <sarim.sarwar@gmail.com> wrote:
Question No. 1:
A company bought
shares at Rs.
per share and sold them after
year at Rs.
. With a
commission rate of buying and selling the stock. What is its return on investment?
Solution:
Bought
1000 shares at Rs. 56.27 = 56,270
Commission at 1.2% = 675.24
Total Costs = 56,270 + 675.24 = 56,945.24
Sold
1000 shares at Rs. 65.25 = 65,250
Commission at 1.2% = 783
Total Sale = 65,250 – 783 = 64,467
Gain
Net receipts = 64,467
Total cost = 56,270
Net Gain = 64,467 – 56,270 = 8,197
Dividends (1000*10/10) = 1,000
Total Gain = 8,197 + 1,000 = 9,197
Return on investment = 9,197 / 56,945.24 * 100
Return on investment = 16.15% --
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--
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