To receive equal dividends from 9% stock at 96 and 12% stock at 120, in what ratio should the money be invested (9% at 96 : 12% at 120)?

Given data

• Stock A: 9 percent at 96 ⇒ dividend per rupee invested = 9/96
• Stock B: 12 percent at 120 ⇒ dividend per rupee invested = 12/120
• Equal total dividends from both portions.

Concept / Approach

• Let investments be A and B. Equate A × (9/96) and B × (12/120) and solve A : B.

Step-by-step calculation

A × (9/96) = B × (12/120)A/B = (12/120) ÷ (9/96) = (1/10) ÷ (3/32) = (1/10) × (32/3) = 32/30 = 16/15Investment ratio (9% at 96 : 12% at 120) = 16 : 15

Verification

Pick A = 16k, B = 15k. Dividends: 16k × 9/96 = 1.5k and 15k × 12/120 = 1.5k; equal as required.

Common pitfalls

• Using face values rather than market prices when computing dividend per rupee invested.
• Inverting the ratio accidentally.

Final Answer

16 : 15