Question

Find the market price of 12% ,₹25 shares of a company which pays a dividend of ₹1875 on an investment of ₹20000.​

Answer 1

Given:

Nominal value = 25

Rate of dividend = 12%

Dividend = 1875

Investment = 20000

now,

n=20000/25

n=800

Dividend = (NRF)/100

1875 = (800×12×F)/100

1875 = 8×12×F

F = 1875/(8×12)

F = 19.53

Answer 2

Answer:

n. v =25

r.of .d=12%

d=1875

i=20000

now

n=20000/25

n=80

d=(NRF)/100

1875=(800×12×F)100

1875=8×12×F

F=1875/(8×12)

now the market price is=1953