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John Bhargava
Asked: 2022-11-10T11:06:29+05:30 In:

Shares A and B have face values of Rs.100 each. A is sold at Rs.x premium, and B is sold at Rs.x discount. The rate of return from each is `x%`. The sum of the annual dividends from both is Rs.10. Find x.
A. 4
B. 8
C. 5
D. 10

Shares A and B have face values of Rs.100 each. A is sold at Rs.x premium, and B is sold at Rs.x discount. The rate of return from each is `x%`. The sum of the annual dividends from both is Rs.10. Find x.
A. 4
B. 8
C. 5
D. 10
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1 Answer

  1. Correct Answer – C
    (i) Find the annual dividend from A and B.
    (ii) MV of share A = 100 + x.
    MV of share B = 100 – x
    (iii) Dividend from share A = `x%` of `(100+x)`,
    where `x%` is the rate of return and `(100+x)` is the MV.
    (iv) Similarly, find dividend from share B.
    (v) Equate total dividend in x to 10.

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