Mr. Anil purchased 2500 shares, of JKL Ltd. @ 20/- each (Face Value 5 per share) and paid brokerage @ 2% on 01-01-2009. The company paid dividend @ 50% each year he sold all the shares at 25/- each on 31-12-2010 and paid brokerage of 1,200/-.
The other investment alternative available to him was SBI Fixed Deposit carrying interest @ 12% p.a., for year on compounded basis.
Was his decision to go for share investment right? Offer your comments with reasoning.
(MU, BMS, Apr. 2011)
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