Question:
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:
[A].Rs. 12
Rs. 15
Rs. 18
Rs. 21
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:
[A].
[B].
[C].
[D].
Answer: Option B
Explanation:
| Dividend on Rs. 20 = Rs. | 9 | x 20 | = Rs. | 9 | . | ||
| 100 | 5 |
Rs. 12 is an income on Rs. 100.
| Rs. | 9 | is an income on Rs. | 100 | x | 9 | = Rs. 15. | ||
| 5 | 12 | 5 |