Question

By investing rupees 7500 in a company paying 10 percent dividend, an income of rupees 500 is recieved. What price is paid for each rupees 100 share?

Answer 1

Given, Total Investment = 7500

Nominal Value = 100

Let x be the number of shares purchased.

Dividend% = 10.

Dividend = 500.

10% of 100x = 500

x = 500/10 = 50.

The price paid = 7500/50

                             = 150.


Hope this helps!