A man buys shares at the par value of Rs 10 yielding 8% dividend at the end of a year. Find the number of shares bought if he receives a dividend of Rs 300.
Answer & explanation
Correct answer: option 4
The correct answer is option (4) : 375
Total received $= ₹300$
Dividend on 1 share $=₹\left(\frac{8}{100}×10\right)$ $=₹0.80$
∴ No. of shares $=\frac{₹300}{₹0.80}=375$