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 investments, at what price did he buy the shares?

a. Rs.40
b. Rs.37.50
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 investments of Rs.100.

Rs.5 is an income on an investments of

Rs.(100×2/25×5)=Rs.40.

Cost of 1 share = Rs.40.
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