Question

By investing Rs 7500 in a company paying 10% dividend and annual income of rupees 500 is received what price is paid for rupees 100 shares

Answer 1

Answer:

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Answer 2

total investment=₹7500

NV of 1 share=₹100

no of shares purchased=y

NV of y shares=100×y

=₹100y

dividend%=10%

dividend=₹500

so, 10% of 100y=₹500

(10/100)×100y=₹500

10y=500

y= 500/10

=50 shares

now,

MV of 1 share=₹7500/50

=₹150

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