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 : Pick one: A) Rs. 12 B) Rs. 15 C) Rs. 18 D) Rs. 21 E) None
Solution   Dividend on Rs. 20 = Rs.(9/100x20) = Rs.9/5   Rs. 12 is an income on Rs. 100.   ∴ Rs.9/5 is an income on Rs. (100/12 X9/5)= Rs.15   Answer Rs. 15
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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 :