John buys 100 shares of par value Rs. 5 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 answer:
A) 2 B) 4 C) 5 D) 6 E) 8
Face value of each share = Rs.5   Total dividend received by John = 100×5×12/100 = Rs.60   Let market value of 100 shares = Rs.x   x×10/100=60   x = 600   ie, Market value of 100 shares = Rs.600   Hence, Market value of each share = Rs.6   Answer is 6.
<result>D</result>
John buys 100 shares of par value Rs. 5 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.