Amardeep Sharma wrote:
Answer is C because statement II says that dividend is 25% but it doesnt state the period. It could be 6 monthly dividend @ 25% per 6 month, while statement I clarify that its annual dividend, hence answer is C, as you have to combine both.
I think..Ppetkov has a valid point here..
Annual dividend is 25%. Agreed. But 25% of what? $50 need not be the basis for calculation. Dividend is calculated on initial offer price. $50 need not be that price. Hence, E can be the answer.