A man buys Rs. 50 s in a company which pays 10% dividend. If the man gets 12.5% on his investments, at what price did he buy the s?
A. Rs.40
B. Rs.37.50
C. Rs.48
D. Rs.52
Dividend on 1 =Rs.(10/100 x 50)
= Rs. 5
Rs.12.50 is an income on an investments of Rs.100.
Rs.5 is an income on an investments of
Rs.(100×2/25×5)=Rs.40.
Cost of 1 = Rs.40.