A man buys ₹ 50 shares in a company which pays 10% dividend. If the man gets 12.5% on his investment, at what… · ABC26GN5258

Subject: General Aptitude · Chapter: Stocks and Shares · Exam: L.I.C.A.A.O. 2003

A man buys ₹ 50 shares in a company which pays 10\% dividend. If the man gets 12.5\% on his investment, at what price did he buy the shares?
(a)₹ 37.50
(b)₹ 40
(c)₹ 48
(d)₹ 52
Answer
Answer: B ✓ checked by 4AB · confidence high
Explanation
Dividend per share = 10 % of 50 = ₹5; 12.5 % return ⇒ price = 5/0.125 = ₹40.

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