11.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. 37.50 B. Rs. 40
C. Rs. 48 D. Rs. 52
Answer: Option:B
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.(100x2/25x5) = Rs. 40.
