A man buys Rs. 20 shares paying 9% dividend. The man want to have an interest of 12% on his money. The market value of each share must be?

Question

Accepted Answer

Dividend on Rs. 20 = Rs. 9 / (100 x 20) = Rs. 9/5 Rs. 12 is an income on Rs. 100 ∴ Rs. 9/5 is an income on Rs. (100/12) x (9/5) = Rs. 15

Discussion & Comments