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?
₹ 20
₹ 15
₹ 25
₹ 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.
× M.V.
180 = 12 × M.V.
M.V. = = ₹ 15.
Hence, option 2 is the correct option.
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