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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. 4B. 8C. 5D. 10 |
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Answer» 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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