Answer : Option D

Explanation :

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Solution 1
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In case of stock1, if he invest Rs.105, he will get a dividend of Rs.12 (assume face value = 100)

In case of stock2, if he invest Rs.88, he will get a dividend of Rs.8 (assume face value = 100)

ie, if he invest Rs.(88*12)/8, he will get a dividend of Rs.12

Required ratio = 105 : (88 × 12)/8 = 105 : (11 × 12) = 35 : (11 × 4) = 35 : 44

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Solution 2
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Let the amount of money he invest in 12% stock = P

Then, Number of shares = P/105 (where 105 is the market value per share)

Total dividend = (P/105) × 12 (Assume face value = Rs.100 and hence dividend per share = Rs.12)

Let the amount of money he invest in 8% stock = Q

Then, Number of shares = Q/88 (where 88 is the market value per share)

Total dividend = (Q/88)× 8 (Assume face value = Rs.100 and hence dividend per share = Rs.8)

If both needs to give equal dividends,

P105×12=Q88×8

PQ=8×10588×12=10511×12=3511×4=3544

P:Q = 35:44

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