A man buys Tk. 50 shares in a company which pays 10% dividend. If the man gets 12.5% on his investment, at what price did he buy the shares?

A Tk. 37.50
B Tk. 40
C Tk. 48
D Tk. 52

Correct Answer: Tk. 40

Hints: Dividend on 1 share = (50×10%) Tk = 50 ×(10/100) = 5 Tk. Tk. 12.5 is an income on an investment of Tk. 100 Tk. 5 is an income on an investment of Tk (100×5) / 12.5 = 40
Bissoy MCQ

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A company declares a 40% stock dividend when there are 4.0 million common shares outstanding with a Tk.1 per value. Their current market price is Tk. 20 per share. Which of the following will be the effect of the stock dividend ?

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