Mathematics
Find the market price of 12%, ₹ 25 shares of a company which pays a dividend of ₹ 1,875 on an investment of ₹ 20,000.
Shares & Dividends
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Answer
Given,
Face Value = ₹ 25
Rate of dividend = 12%
Annual dividend = ₹ 1,875
Investment = ₹ 20,000
By formula,
Income from each share = Rate of div. × N.V. of 1 share
=
= ₹ 3.
Hence, the market price per share is ₹ 32.
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