Question
A man bought a Rs 72 share of a company which paid 10%
dividend. If the man got 18% on his investment, at what price did he buy the share?Solution
Dividend on one share = 10/100×72 = Rs. 7.2 Rs 18 is the income on the investment of Rs 100 ∴ Rs 7.2 is the income on the investment of =100/18× 7.2 = Rs 40 ∴ Cost of one share = Rs 40
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