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A man buys 75, Rs 100 shares of a company which pays 9 per cent dividend. He buys shares at such a price that he gets 12 per cent of his money. At what price did he buy the shares? |
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Answer» Nominal value of 1 share = Rs 100 Nominal value of 75 shares = 100 × 75 = Rs 7500 Dividend% = 9% ∴ Dividend = 9% of Rs 7500 = 9/100 × Rs 7500 = Rs 675 Let market price of 1 share = Rs y Then market price of 75 shares = Rs y Profit% on investment = 12% 12% of 75 y = Rs 657 ⇒ 12/100 × 75 y = Rs 657 Let market price of 1 share = Rs y Then market price of 75 shares = Rs 75 y Profit% on investment = 12% 12% of 75 y = Rs 657 ⇒ 12/100 × 75 y = Rs 657 ⇒12/100 × 75 y = Rs 657 ⇒ y = Rs 75 |
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