Mathematics

Find the market price of 5% ₹100 share when a person gets a dividend of ₹65 by investing ₹1430.

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Let the number of shares purchased be x

Nominal Value per share = ₹100

Rate of Dividend = 5%

Annual Dividend = No. of shares x Rate of Dividend x Nominal Value per share

According to the given,

$65 = x \times \dfrac{5}{100} \times 100 \\[0.5em] 65 = 5x \\[0.5em] x = \dfrac{65}{5} \\[0.5em] x = 13$

∴ No. of shares purchased = 13

Total Investment = ₹1430

∴ Market Price of one share

$= \dfrac{\text{Total Investment}}{\text{No. of shares}} \\[0.7em] = \dfrac{1430}{13} \\[0.5em] = \bold{₹110}$

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