A man buys Rs. 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 ?

Answer: Option B

Dividend on 1 share
= Rs. $$\left(\frac{10}{100}\times 50\right)$$  
= Rs. 5
Rs. 12.50 is an income on an investment of Rs. 100
Rs. 5 is an income on an investment of :
= Rs. $$\left(100\times \frac{2}{25}\times 5\right)$$
= Rs. 40.
∴ Cost of 1 share = Rs. 40