A company declares a dividend of `12%` on Rs. 100 shares .A man buys such shares and gets `15%` on his investment .At what price he bought the shares?

Options

A. Rs.125
B. Rs. 85
C. Rs. 80
D. Rs. 76

Answer

To solve the problem, we need to determine the price at which the man bought the shares. Let's break it down step by step.

### Step 1: Understand the Dividend
The company declares a dividend of 12% on Rs. 100 shares. This means:
- Dividend per share = 12% of Rs. 100 = Rs. 12.

### Step 2: Determine the Return on Investment
The man receives a return of 15% on his investment. This means:
- If he invests Rs. X, his return from the shares is 15% of X.

### Step 3: Set Up the Equation
Since the dividend he receives from the shares is Rs. 12, we can set up the equation based on the return he is getting:
- Dividend = Return on Investment
- Rs. 12 = 15% of X
- Rs. 12 = (15/100) * X

### Step 4: Solve for X
Now, we will solve for X:
1. Multiply both sides by 100 to eliminate the fraction:
- 12 * 100 = 15 * X
- 1200 = 15X
2. Divide both sides by 15:
- X = 1200 / 15
- X = 80

### Conclusion
The man bought the shares at Rs. 80 each.

### Summary of Steps:
1. Calculate the dividend per share.
2. Understand the return on investment.
3. Set up the equation relating dividend and return.
4. Solve for the price at which the shares were bought.