a) Rs.22 b) Rs.22.50 c) Rs.25 d) Rs.22.50
Stocks and Shares MCQ1 (A man buys Rs. 25 shares in a company)
Solution:
A man buys Rs. 25 shares in a company …..
Investment= Rs 25
Dividend payment by the company for the investment= 9%
i-e
\[ Dividend = 25\times\frac{9}{100}=\frac{9}{4} \]
But according to the statement he earns Rs for Rs 100 i-e 10% i-e if (suppose) he invests 100 Rs then he earns Rs10!
mathematically,
\[ Rs10 Earned for =Rs 100 \]
or
\[ Re1 Earned for\frac{100}{10}=Rs10 \]
But he earned Rs 9/4 from the company for total shares investment in which he bought each share for some unknown price !
That unknown price can be calculated by multiplying 9/4 both sides of above last expression.
i-e
\[ Rs \frac{9}{4} Earned for =\frac{9}{4}\times 10=Rs 22.5 \]
So the unkown price of a share is
