Mathematics
NULL
Medium
Question
A man buys Rs.25 shares paying 9% dividend so that his investment yields 10%. At what price did he buy the shares?
A
Rs.22
B
Rs.22.50
✓ Official correct answer
C
Rs.25
D
Rs.22.50
Community credibility
Registered members can vote for the answer they believe is correct today and explain why. If the facts change after an election or news event, suggest a new option so others can vote it up.
A
Rs.22
No member explanations yet for this option.
B
Rs.22.50
No member explanations yet for this option.
C
Rs.25
No member explanations yet for this option.
D
Rs.22.50
No member explanations yet for this option.
Explanation
Dividend per share = 9% of 25 = Rs.2.25. For 10% yield, market price = 2.25 / 0.10 = Rs.22.50.