1.

Shares A and B have face values of Rs.100 each. A is sold at Rs.x premium, and B is sold at Rs.x discount. The rate of return from each is x%. The sum of the annual dividends from both is Rs.10. Find x.

Answer»

4
8
5
10

Solution :(i) Find the annual dividend from A and B.
(ii) MV of share A = 100 + x.
MV of share B = 100 - x
(iii) Dividend from share A = `x%` of `(100+x)`,
where `x%` is the RATE of return and `(100+x)` is the MV.
(IV) Similarly, find dividend from share B.
(v) Equate TOTAL dividend in x to 10.


Discussion

No Comment Found

Related InterviewSolutions