Question
A man buys Rs. 20 shares paying 9% dividend. The man wants to have an interest of 12% on his money. The market value of each share is:
Answer: Option B
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Dividend on Rs. 20 = Rs.\(\left(\frac{9}{100}\times20\right)\) = Rs. \(\frac{9}{5}.\)
Rs. 12 is an income on Rs. 100.
So, Rs. \(\frac{9}{5}.\) is an income on Rs. \(\left(\frac{100}{12}\times\frac{9}{5}\right)\) = Rs. 15 .
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