By investing Rs 7500 in a company paying 10 percent dividend, an income of Rs 500 is received. What price is paid for each Rs 100 share ?
Answer & explanation
Correct answer: option 4
The correct answer is option (4): ₹150
Dividend on one share of $₹ 100= ₹10$
Total dividend received $=₹500$
∴ No, of shares $=\frac{₹500}{₹10}= 50$
Price of each 100 share $=₹\frac{7500}{50}$
$=₹150$