A man purchases shares with a face value of Rs. 25 that offer a 9% dividend. If his investment yields a 10% return, at what price did he acquire each share?

Explanation

Let the purchase price per share be Rs. X. The dividend per share is 9% of Rs. 25, which equals Rs. 2.25. Since the return on investment is 10%, the income of Rs. 2.25 corresponds to 10% of the purchase price: (10/100) × X = 2.25. Solving for X gives Rs. 22.50. Therefore, the shares were bought at Rs. 22.50 each.