1.

If the rate of return and dividend from a share are r% and d% respectively, find the premium/discount %, given d gt r.

Answer»

`((r-d))/(r)%" PREMIUM"`
`((r-d))/(d)%" discount"`
`((d-r))/(r)%" premium"`
`((d-r))/(d)%" discount"`

Solution :(i) `"Anuual DIVIDEND "=(d)/(100)xx"Share value"=(r)/(100)xx"market value"`.
(ii) As `lgtr`, shares are BROUGHT at permium.
(ii) LET the income from each share be
`d=(i)/(FV)xx100 and r=(i)/(MV)xx100`
(iii) `"Premium"=MV-FV."Percentage of premium"`
`=(MV-FV)/(FV)xx100`


Discussion

No Comment Found