Question

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?​

Answer 1

❒ 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