By investing Rs. 7,500 in a company paying 10 percent dividend, an annual income of Rs. 500 is received. What price is paid for each of Rs. 100 share ?
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Solution
Since, the company pay 10% dividend annual and man received income Rs.500 annually
Then Rs.500 get dividend on shares value =500×10010=5000 Rs
Then he buy share =5000100=50
But he pay Rs 7500 for 50 share then the price of one share=750050=150Rs