Multiple choice general knowledge math & puzzles

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:

  1. 12

  2. 15

  3. 18

  4. 21

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Dividend per share is 9% of Rs. 20 = Rs. 1.80. The man wants this Rs. 1.80 to represent a 12% return on his investment (Market Value). So, 0.12 * MV = 1.80, which gives MV = 1.80 / 0.12 = 15. Other values do not yield a 12% return.