A man buys 75, ₹100 shares paying 9 percent dividend. He buys shares at such a price that he gets 12 percent of his money. At what price did he buy the shares?
Given,
Nominal value of 1 share = ₹100
So, the nominal value of 75 shares = ₹100 × 75 = ₹7,500
And, Dividend % = 9 %
Thus, dividend = 9 % of ₹7,500 =
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9100 × ₹7,500 = ₹675
Let’s consider the market price of 1 share = ₹y
Then the market price of 75 shares = ₹75y
And, Profit % on investment = 12%
12% of 75y = ₹675
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12100 × 75y = ₹675
y = ₹75
Therefore, the price of his shares is ₹75 each