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Mathematics

What is the market value of 4124\dfrac{1}{2} % (₹ 100) share, when an investment of ₹ 1800 produces an income of ₹ 72 ?

Shares & Dividends

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Answer

Given,

Nominal value (N.V.) = ₹ 100

Income (dividend) on one share = 4124\dfrac{1}{2} % of N.V. = 412100×100=412\dfrac{4\dfrac{1}{2}}{100} \times 100 = 4\dfrac{1}{2}.

Given,

Total income = ₹ 72

⇒ No. of shares × Income on one share = 72

⇒ No. of shares × 4.5 = 72

⇒ No. of shares = 724.5=16\dfrac{72}{4.5} = 16.

We know that,

⇒ Sum invested = M.V. of each share × No. of shares

⇒ 1800 = M.V. of each share × 16

⇒ M.V. of each share = 180016\dfrac{1800}{16} = ₹ 112.50

Hence, M.V. of each share = ₹ 112.50

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