Question:A man buys Rs. 50 shares in a company which pays 10% dividend. If the man gets 12.5% on his investment, at what price did he buy the shares ?
A Rs. 40
B Rs. 48
C Rs. 52
D Rs. 37.50
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+ Answer
A
+ ExplanationDividend on 1 shares `= Rs. (10/100 xx 50)`
`= Rs. 5.
Rs. 12.5 is an income on an investment of Rs. 100
Rs. 5 is an income on an investment of Rs. (100 xx 2/25 xx 5)`
`= Rs. 40`
:. Cost of 1 shares = Rs. 40