A woman buys 75, Rs.100 shares of a company which pays 9 per cent dividend. She buys shares at such a price that she gets 12 per cent of his money . At what price should she buy the shares?
Answers
❒ Given:–
- Per cent dividend = 9%
- 1 share value = Rs.75
❒ To find:–
- Price at which she should buy the shares?
❒ Step by step explaination:–
As we know that nominal value of 1 share is Rs.100. Therefore, value of 75 shares would be as follows:-
➠ 1 share nominal value = Rs.100
➠ 75 shares nominal value = 100×75
= Rs.7500
Now, as we came to knew nominal value of 75 shares is Rs.7500 and we already know dividend per cent paid is 9%.
So, dividend would be:-
➠ 9% of 7500
➠ 9/100 × 7500
Reducing to their lowest term.
➠ Rs.675
Let us assume the market price of one share be Rs.y. Therefore market price of 75 shares would be Rs.75y.
Calculating the profit% in investment or price at which she should buy the shares . That is,
12% of 75y = 657
Reducing to their lowest term.
➠ 12/100 × 75y = 657
➠ 900y / 100 = 657
➠ Rs.75
❒ Answer:–
At price should she buy the shares is Rs.75