alleryA pays ₹10 yearly at ₹125. B pays ₹4 yearly. B's price for the same yield?
A₹50
B₹40
C₹62.50
D₹80
Answer & Solution
Correct answer: A. ₹50
A yields 8%, so B must cost ₹50 for its ₹4 dividend to yield the same percentage.
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