A man buys Rs. 50 shares in a company which pays 10% dividend. If the man gets 12.5% on his investments, at what price did he buy the shares?

A. Rs.40
B. Rs.37.50
C. Rs.48
D. Rs.52

Dividend on 1 share=Rs.(10/100 x 50)
= Rs. 5

Rs.12.50 is an income on an investments of Rs.100.

Rs.5 is an income on an investments of

Rs.(100×2/25×5)=Rs.40.

Cost of 1 share = Rs.40.

Correct Answer: A. Rs.40 ✔

Last Updated: October 07, 2019