Raja buys 100 shares of par value Rs. 15 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.
Select:
A) 2
B) 4
C) 5
D) 6
E) 18
Face value of each share = Rs.15   Total dividend received by Raja= 100Ã—15Ã—12/100 = Rs.180   Let market value of 100 shares = Rs.x   xÃ—10/100=180   x =1800   ie, Market value of 100 shares = Rs.1800   Hence, Market value of each share = Rs.18   Answer is 18
<result>E</result>
Raja buys 100 shares of par value Rs. 15 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.