The total investment made by John = ₹7200
Nominal Value of the share = ₹20
Market Value of the share = ₹16
No of shares bought = 720016 = 450
Total Income = (Number of shares) × (Market Value of each share) × (rate of dividend)
⇒450×20×10 =₹900
So, % of return on Investment is:-
(Total incomeTotal Investment)×100 = (9007200)×100 = 12.5 %