Question

A man buys ₹ 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. 15
• B. Rs. 12
• C. Rs. 21
• D. Rs. 18

Answer 1

The correct option is A

Rs. 15

Given Rate of Interest = 12% Dividend % = 9 % N.V = ₹ 20

We know

Rate of Interest x M.V = Dividend % x N.V

12 % x M.V = 9 % x 20

M.V = $\frac{9}{100}$ $\times$ $\frac{100}{12}$ $\times$ 20

= ₹ 15