John Buys 100 Shares Of Par Value Rs. 5 Each, Of A Company, Which Pay

1.	John Buys 100 Shares Of Par Value Rs. 5 Each, Of A Company, Which Pays An Annual Dividend Of 12% At Such A Price That He Gets 10% On His Investment. Find The Market Value Of A Share?
Answer» Face value of each SHARE = Rs.5 Total dividend RECEIVED by John = 100×5×12/100 = Rs.60 Let market value of 100 SHARES = Rs.x x×10/100=60 x = 600 ie, Market value of 100 shares = Rs.600 HENCE, Market value of each share = Rs.6 Face value of each share = Rs.5 Total dividend received by John = 100×5×12/100 = Rs.60 Let market value of 100 shares = Rs.x x×10/100=60 x = 600 ie, Market value of 100 shares = Rs.600 Hence, Market value of each share = Rs.6

John Buys 100 Shares Of Par Value Rs. 5 Each, Of A Company, Which Pays An Annual Dividend Of 12% At Such A Price That He Gets 10% On His Investment. Find The Market Value Of A Share?

Answer»

Face value of each SHARE = Rs.5

Total dividend RECEIVED by John = 100×5×12/100 = Rs.60

Let market value of 100 SHARES = Rs.x

x×10/100=60

x = 600

ie, Market value of 100 shares = Rs.600

HENCE, Market value of each share = Rs.6

Face value of each share = Rs.5

Total dividend received by John = 100×5×12/100 = Rs.60

Let market value of 100 shares = Rs.x

x×10/100=60

x = 600

ie, Market value of 100 shares = Rs.600

Hence, Market value of each share = Rs.6

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John Buys 100 Shares Of Par Value Rs. 5 Each, Of A Company, Which Pays An Annual Dividend Of 12% At Such A Price That He Gets 10% On His Investment. Find The Market Value Of A Share?

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