#### Question

A man buys 75, Rs 100 shares of a company which pays 9 per cent dividend. He buys shares at such a price that he gets 12 per cent of his money. At what price did he buy the shares?

#### Solution

Nominal value of 1 share = Rs 100

Nominal value of 75 shares = `100 xx 75 = Rs 7500`

Dividend% = 9%

∴ Dividend = 9% of Rs 7500

`= 9/100 xx Rs 7500= Rs 675`

Let market price of 1 share = Rsy

Then market price of 75 shares = Rsy

Profit% on investment = 12%

12% of 75y = Rs 657

`=> 12/100 xx 75y = Rs 657`

Let market price of 1 share = Rsy

Then market price of 75 shares = Rs 75y

Profit% on investment = 12%

12% of 75y = Rs657

`=> 12/100 xx 75y = Rs 657`

`=> y = Rs 75`

Is there an error in this question or solution?

Solution A Man Buys 75, Rs 100 Shares of a Company Which Pays 9 per Cent Dividend. He Buys Shares at Such a Price that He Gets 12 per Cent of His Money. at What Price Did He Buy the Shares? Concept: Shares and Dividends.