Question

Find the market price of 5% Rs 100 share when a person gets a dividend of Rs 65 by investing Rs 1430 .

Answer 1

dividend=number of the shares*FV*Rate
now let the FV be 100
so 65=5/100*100*number of the shares
number of the shares=13
investment=market price*number of the shares
1430=13*m.p.
So MP =110

Answer 2

According to the question

Amount of dividend$=Rs 65$

Rate of divided $=5 %$%

∴ Total face values

$=\frac{65\times 100}{5}$

$=1300$

If face value is $Rs 1300,$ then market value $=Rs 1430$

and it face value is $Rs 100,$ then market value $=\frac{1430\times 100}{1300}$

$=Rs 110$