Question: A man boys Rs.20 shares paying 9% dividend. The man wants to have an interest of 12% on his money. The market value of each share is :
A
Rs. 12
B
Rs. 15
C
Rs. 18
D
Rs. 21
Note: Dividend on Rs. 20 `= Rs. (9/100 xx 20)`
`= Rs. 9/5.`
Rs 12 is an income on Rs. 100.
:. Rs. `9/5` is an income on Rs`,(100/12 xx 9/5)`
`= Rs. 15.