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Mathematics

A man buys 75, ₹ 100 shares paying 9 percent dividend. He buys shares at such a price that he gets 12 percent of his money. At what price did he buy the shares?

Shares & Dividends

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Answer

We know that,

Rate of dividend × N.V. = Profit (return) % × M.V.

Let M.V. of each share be x.

9100×100=12100×xx=9×10012x=75.\Rightarrow \dfrac{9}{100} \times 100 = \dfrac{12}{100} \times x \\[1em] \Rightarrow x = \dfrac{9 \times 100}{12} \\[1em] \Rightarrow x = 75.

Hence, cost of share is ₹ 75 each.

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