Question

A company with 10000 shares of Rs 100 each, declares an annual dividend of 5%. If he received 4% of his investment, find the price he paid for each share.

• A. 100
• B. 150
• C. 125
• D. 200

Answer 1

The correct option is C

125

M.V $\times$ Profit % = Dividend % $\times$ N.V

Where M.V is the price he paid by him

$M.V\times \frac{4}{100}=\frac{5}{100}\times 100$

M.V $=\frac{500}{4}=125$