Question

Atul invested Rs 75000 in buying Rs 200 shares of ABC Ltd paying a dividend of 20%. He bought them at a rate which gave him a yield of 16%. After a year he sold them at Rs 350 and invested the proceeds along with the dividend obtained in buying Rs 175 shares of XYZ ltd paying a dividend of 16%. He thereby increased his annual income by Rs 2400. Find the rate at which he bought XYZ ltd shares