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Mathematics

Deepak invested in ₹ 25 shares of a company paying 12% dividend. If he received 10% on his investment, at what price did he buy each share?

Shares & Dividends

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Answer

Given,

Face Value = ₹ 25

Dividend Rate = 12%

Return percentage = 10%

Let M.V. be ₹ x.

By formula,

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

∴12100×25=10100×x⇒12×25=10x⇒x=30010⇒x=₹ 30.\therefore \dfrac{12}{100} \times 25 = \dfrac{10}{100} \times x \\[1em] \Rightarrow 12 \times 25 = 10x \\[1em] \Rightarrow x = \dfrac{300}{10}\\[1em] \Rightarrow x =₹\ 30.

Hence, Deepak bought each share at ₹ 30.

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