A man buys Rs. 20 shares paying 9% dividend. The man wants to have an interest of 12% on his money. The market value of each share is:_________?
Q1. A man buys Rs. 20 shares paying 9% dividend. The man wants to have an interest of 12% on his money. The market value of each share is:_________?
Answer: 15
Explanation: Annual dividend per Rs. 20 share at 9% = Rs. 1.80; for 12% return on investment: market value = 1.80/0.12 = Rs. 15.