A man buys Tk. 40 shares paying 6% dividend. The man wants to have an interest of 12% on his money. The market value of each share is-

Question: A man buys Tk. 40 shares paying 6% dividend. The man wants to have an interest of 12% on his money. The market value of each share is-

Solution:
Dividend on Tk. 40 = Tk. (6/100) × 40
= Tk. 2.40
Tk. 12 is an income on Tk. 100
∴ Tk. 2.40 is an income on = Tk. (100/12) × 2.40
= Tk. 20
Therefore, the market value of each share is Tk. 20.