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 ?

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

Dividend on 1 share = Rs. ( 10/100 X 50 ) = Rs. 5. Rs. 12.50 is an income on an investment of Rs. 100. Rs. 5 is an income on an investment of Rs, ( 100 X 2/25 X 5 ) = Rs. 40. So Cost of 1 share = Rs. 40.