Question

A company declared a dividend of 14%. Find tire market value of rupees 50 shares if the return on the investment was 10 %

Answer 1

Answer:

Face value is 50

Dividend is 14% or ₹7 per share.

Step-by-step explanation:

lf 10% yield is to be earned, invest ₹ 70 per share. ANSWER.

Answer 2

Given :

A company declared a dividend of 14%

The face value  = Rs 50

The percentage of return investment = 10%

To Find :

The market value of Rs 50 share

Solution :

Let The market value = Rs x

∵ Face value of 1 share = Rs 50

Now,  dividend on 1 share = 14% of Rs 50

                                           = $\dfrac{14}{100}$ × Rs 50

                                           = Rs 7

Now,

percentage of return investment ×  market value  =  dividend on 1 share

i.e  10 % of Rs x = Rs 7

Or,  $\dfrac{10}{100}$  × x = Rs 7

∴               x = $\dfrac{700}{10}$

i.e market value = x = Rs 70

Hence, The  market value of Rs 50 shares is Rs 70 . Answer