A man buys Rs. 20 shares paying 9% dividend. The man wants to have an interest of 12% on his money. The market value of each share is:
Rs. 12
Rs. 15
Rs. 18
Rs. 21
Explanation:
| Dividend on Rs. 20 = Rs.$ \left(\dfrac{9}{100} \times 20\right) $= Rs.$ \dfrac{9}{5} $. |
Rs. 12 is an income on Rs. 100.
| $\therefore$ Rs.$ \dfrac{9}{5} $is an income on Rs.$\left(\dfrac{100}{12} \times \dfrac{9}{5} \right)$= Rs. 15. |