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₹5,000 buys FV₹100 shares at ₹125. Annual income is ₹500. Dividend rate?

A15%

B8%

C12.5%

D10%

Answer & Solution

Correct answer: C. 12.5%

The investment buys forty shares, whose ₹500 income implies ₹12.50 per ₹100 face value.

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