Helal buys 1,500 share at Tk. 12 per share. Exactly one year later he sales all the share at Tk.14 per share and he receives Tk. 1.00 as dividend per share at the end of year. Calculate the rate of return on investment.

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.

  1. 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.
  2. 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.
  3. 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.
  4. Total Income: Total income = Capital gain + Dividend income Total income = Tk. 3,000 + Tk. 1,500 = Tk. 4,500.
  5. 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%.