Question

A man buys Rs. 25 shares in company which pays 9\(\%\) dividend. The money invested is such that it gives 10\(\%\) on investment. At what price did he buy the shares?

• A. 22.5
• B. 28
• C. 30
• D. 25

Answer 1

The Correct Option is A

Step 1: The dividend per share is 9% of Rs. 25:

\[ \text{Dividend per share} = \frac{9}{100} \times 25 = 2.25 \]

Step 2: The investment gives a 10% return on the purchase price, so the price at which the share is bought is:

\[ \frac{2.25}{10\%} = \frac{2.25}{0.10} = 22.5 \]