Mathematics
What is the market value of % (₹ 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 = % of N.V. = .
Given,
Total income = ₹ 72
⇒ No. of shares × Income on one share = 72
⇒ No. of shares × 4.5 = 72
⇒ No. of shares = .
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 = = ₹ 112.50
Hence, M.V. of each share = ₹ 112.50
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