Question

A man buys rs 20 shares paying 9%dividend.he wants to have an interest of 12% on his money.market value of each share is?

Answer 1

Given Cost of Share = 20

Dividend rate = 9%

then dividend Per share= 20 ×9% =1.8

He wants to have an interest of 12% . that means

money Per share × 12/100 = 1.8

Then market value of each share will be 100/12 × 1.8 = 15