Question

Man buys a ₹80 shares in a company
which pays 20% dividend. he buy the
shares at such a price that is profit is
16% on his investment At what price
did he buy the shares?

Answer 1

Answer:

dividend (profit) given by company on 1 share=10% of Rs.40

=Rs.4

suppose the man buys one share for Rs x

his profit=16% of Rs x

=Rs. 16x/100

according to the statement,16x/100

=4

=>x=25

Therefore,the man buys each shares for Rs.25

hope it helps u