Mathematics
Find the market value of 12% ₹ 25 shares of a company which pays a dividend of ₹ 1875 on an investment of ₹ 20000.
Shares & Dividends
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Answer
Given,
Nominal value (N.V.) = ₹ 25
Income (dividend) on one share = 12 % of N.V. = .
Given,
Total income = ₹ 1875
⇒ No. of shares × Income on one share = 1875
⇒ No. of shares × 3 = 1875
⇒ No. of shares = .
We know that,
⇒ Sum invested = M.V. of each share × No. of shares
⇒ 20000 = M.V. of each share × 625
⇒ M.V. of each share = = ₹ 32
Hence, M.V. of each share = ₹ 32.
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