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Q. 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:
Explanation by: Deepak Sahoo
Dividend on Rs. 20 = Rs. (9/100)x 20 = Rs.9/5. Rs. 12 is an income on Rs. 100. Rs.9/5 is an income on Rs.[ (100/12) x (9/5)] = Rs. 15.
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