To calculate the rate of return on investment for Helal, we’ll consider both the capital gain from the sale of shares and the dividend received.
- Initial Investment: Helal buys 1,500 shares at Tk. 12 per share. Total initial investment = 1,500 shares * Tk. 12 per share = Tk. 18,000.
- Capital Gain: He sells all 1,500 shares at Tk. 14 per share after one year. Total sale proceeds = 1,500 shares * Tk. 14 per share = Tk. 21,000. Capital gain = Sale proceeds – Initial investment = Tk. 21,000 – Tk. 18,000 = Tk. 3,000.
- Dividend Income: He receives Tk. 1.00 as dividend per share. Total dividend income = 1,500 shares * Tk. 1.00 per share = Tk. 1,500.
- Total Income: Total income = Capital gain + Dividend income Total income = Tk. 3,000 + Tk. 1,500 = Tk. 4,500.
- Rate of Return: Rate of return on investment is calculated as the total income divided by the initial investment, expressed as a percentage. Rate of return = (Total income / Initial investment) * 100 Rate of return = (Tk. 4,500 / Tk. 18,000) * 100 Rate of return = 25%.
Therefore, the rate of return on Helal’s investment is 25%.