By Investing ₹ 8400 in a company paying 10 percent dividend, an income of ₹ 400 is received. What price is paid for each ₹ 100 share ?

₹ 200

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₹ 120

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₹ 210

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₹ 190

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Solution

The correct option is C
₹ 210

Given that Amount invested = ₹ 8400
Face of one share = ₹ 100
Annual income = ₹ 400
Dividend % = 10 %
Dividend on one share = Dividend % of N.V
= 10 % of 100
= ₹ 10

Number of shares bought = $\frac{A n n u a l I n c o m e}{D i v i d e n d o n s h a r e}$
= $\frac{400}{10}$
= 40
M.V of one share = $\frac{A m o u n t I n v e s t e d}{N u m b e r o f s h a r e s b o u g h t}$
= $\frac{8400}{40}$
= ₹ 210

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