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:

A. Rs. 12

B. Rs. 15

C. Rs. 18

D. Rs. 21

Correct Answer :

B. Rs. 15

$DividendonRs.20=Rs.\left(\frac{9}{100}\times 20\right)=Rs.\frac{9}{5}.$ Rs. 12 is an income on Rs. 100. $\therefore Rs.\frac{9}{5}isanincomeonRs.\left(\frac{100}{12}\times \frac{9}{5}\right)=Rs.15.$