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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:_________?

Correct answer: B. 15

  • A. 12
  • B. 15
  • C. 18
  • D. 20

Explanation

Each Rs. 20 share pays 9% of Rs. 20, giving a dividend of Rs. 1.80 per share. For a 12% return, market price = Rs. 1.80 ÷ 0.12 = Rs. 15. The likely trap is option c, Rs. 18, which uses the dividend rate incorrectly instead of dividing the dividend by the desired return.

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Percentages express a quantity as parts per hundred and support calculations involving increases, decreases, discounts, commissions, taxes, and successive changes. Questions require distinguishing percentage change from percentage points and identifying the original value when a final value and its percentage change are given.

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