Stocks And Shares Q12

12.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	x 50		= Rs. 5
			100

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

Rs.5 is an income on an investments	= Rs.		100 x 2		= Rs. 40
			25 x 5

Cost of 1 share = Rs.40.