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Question
At what price should I buy a share whose face value is Rs.200 and pays dividend of  9%, so that my yield is 12%
Options:
A .  Rs. 75
B .  Rs. 120
C .  Rs. 150
D .  Rs. 180
E .  Rs. 175
Answer: Option C
:
C
Let the required price be Rs. x
Dividend = 9% of Rs. 200 = Rs. 18
0.12x = 18 x = Rs. 150
Hence option (c)

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