Find market value for a target yield A man buys Rs. 20 face-value shares paying 9% dividend. He requires a 12% return on his money. What should be the market value (purchase price) per share?

Introduction / Context:
Here we solve for price given a required yield. Dividend per share is known from face value and dividend rate; dividing that income by the target yield gives the price the investor can afford to pay to realize the required return.

Given Data / Assumptions:

• Face value per share = Rs. 20.
• Dividend rate = 9% ⇒ Dividend per share = 0.09 * 20 = Rs. 1.80.
• Required yield = 12% per annum.
• No brokerage or tax is considered.

Concept / Approach:
Yield (%) = (Dividend / Price) * 100 ⇒ Price = Dividend * 100 / Yield%. This rearrangement directly gives the market value that achieves the target yield.

Step-by-Step Solution:
Dividend per share = Rs. 1.80.Required yield = 12% ⇒ 0.12 as a decimal.Price = 1.80 / 0.12 = Rs. 15.

Verification / Alternative check:
Check: Yield = 1.80 / 15 * 100 = 12%. So the chosen price precisely meets the target return requirement.

Why Other Options Are Wrong:
Rs. 12 would produce 15% yield; Rs. 18 yields 10% only; Rs. 21 yields about 8.57%; Rs. 16 yields 11.25%. None match 12% exactly.

Common Pitfalls:
Forgetting that dividend is based on face value or misapplying the percentage. Price must be set so that income/price equals the target yield.

Final Answer:
Rs. 15