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Mathematics

Asha buys ₹ 20 shares of a company which pays 9% dividend at such a price that she gets a return of 12% on her investment. At what price did she buy each share?

  1. ₹ 20

  2. ₹ 15

  3. ₹ 25

  4. ₹ 18

Shares & Dividends

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Answer

Given,

Face Value (FV) of share = ₹ 20

Dividend = 9%

Return on investment = 12%

By formula,

Dividend % × N.V. = Return % × M.V.

9100×20=12100\dfrac{9}{100} \times 20 = \dfrac{12}{100} × M.V.

180 = 12 × M.V.

M.V. = 18012\dfrac{180}{12} = ₹ 15.

Hence, option 2 is the correct option.

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