Mathematics

₹40 shares of a company are selling at 25% premium. If Mr. Jacob wants to buy 280 shares of the company, then the investment required by him is

  1. ₹11200
  2. ₹14000
  3. ₹16800
  4. ₹8400

Shares & Dividends

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Answer

Nominal Value per share = ₹40

As the shares are selling at 25% premium,
∴ Market Value per share = ₹40 + 25% of ₹40 = ₹40 + ₹10 = ₹50

No of shares Mr. Jacob wants to buy = 280

∴ Total Investment of Mr. Jacob = 280 x 50 = ₹14000

∴ Option 2 is the correct option.

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