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ICSEClass XMathematicsShares And Dividends2026 Easy

QQuestion

Asha buys ₹ 20 shares of a company which pays 9% dividend at such a price that she gets a return of 12% on her investment. At what price did she buy each share?

(a) ₹ 20

(b) ₹ 15

(c) ₹ 25

(d) ₹ 18

Exam-ready answer

Answer

(b) ₹ 15

Explanation:

Face value = ₹ 20

Dividend = 9%

Return = 12%

Dividend per share = \frac{9}{100} × 20 = ₹ 1.80

Market value = \frac{1.80\times100}{12} = ₹ 15

Therefore, she bought each share for ₹ 15.

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