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Mathematics

A man purchase 1200 shares of a company of the face value ₹ 50 at a discount of ₹ 10.

Assertion (A): His total investment is ₹ 60,000.

Reason (R): The market value of each share is ₹ 40.

  1. Assertion (A) is true, but Reason (R) is false.

  2. Assertion (A) is false, but Reason (R) is true.

  3. Both Assertion (A) and Reason (R) are correct, and Reason (R) is the correct reason for Assertion (A).

  4. Both Assertion (A) and Reason (R) are correct, and Reason (R) is incorrect reason for Assertion (A).

Shares & Dividends

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Answer

Given,

Number of shares = 1200

Face value per share = ₹ 50

Discount = ₹ 10

Market value (purchase price) per share = ₹ 50 − ₹ 10 = ₹ 40

So, reason (R) is true.

By formula,

Investment = Number of shares x Market value per share

= 1200 x 40

= ₹ 48,000.

So, assertion (A) is false.

Thus, Assertion (A) is false, but Reason (R) is true.

Hence, option 2 is the correct option.

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