Stocks & Shares Mcqs


Q.  A man buys Rs. 50 shares in a company which pays 10% dividend. If the man gets 12.5% on his investment, at what price did he buy the shares ?

a. Rs. 37.50
b. Rs. 40
c. Rs. 48
d. Rs 52


ANSWER: See Answer
 
Dividend on 1 share = Rs. ( 10/100 X 50 ) = Rs. 5. Rs. 12.50 is an income on an investment of Rs. 100. Rs. 5 is an income on an investment of Rs, ( 100 X 2/25 X 5 ) = Rs. 40. So Cost of 1 share = Rs. 40.
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