1.

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?

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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