Neco Model Questions Vol1 2018 Commerce Question 7
Practice objective / multiple choice question 7 from the 2018 Neco Model Questions Vol1 Commerce examination.
An investor holds 200 shares of Company X bought at \(\text{₦}150\) each and 150 shares of Company Y bought at \(\text{₦}240\) each. Company X pays an annual dividend equal to \(5\%\) of its market price, while Company Y pays \(4\%\) of its market price. The investor wants an overall annual return of \(12\%\) on the total investment (including dividends and capital gains). Assuming the shares are sold at the end of the year, the price of Company X is expected to rise by \(8\%\) over its purchase price. What minimum selling price per share of Company Y must be set to achieve the target return?
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About This Question
This is Neco Model Questions Vol1 2018 Commerce Question 7. It is one of the objective questions from the 2018 Neco Model Questions Vol1 Commerce examination.
Difficulty level: Hard .
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