David buys 100 shares of par value Rs. 8 each, of a company, which pays an annual dividend of 12% at such a price that he gets 10% on his investment. Find the market value of a share. Choose the correct choice from the following answers
A) 2 B) 4 C) 5 D) 6 E) 9.6
Face value of each share = Rs.8   Total dividend received by David = 100Ã—8Ã—12/100 = Rs.96   Let market value of 100 shares = Rs.x   xÃ—10/100=96   x = 960   ie, Market value of 100 shares = Rs.960   Hence, Market value of each share = Rs.9.60   Answer is 9.6
<result>E</result>
David buys 100 shares of par value Rs. 8 each, of a company, which pays an annual dividend of 12% at such a price that he gets 10% on his investment. Find the market value of a share.