Question

Hello can can!!..........

Answer 1

Let the market value of each share be x.

Given that Face value of each share = 1000.

Given that rs 10 of each company which pays an annual dividend of 15%.

Total dividend = 1000 * 10 * 15/100

                         = 1500


Now,

Given that he gets 5% on his investement.

x * 5/100 = 1500

x = 30000.


Therefore the market value of a share = 30000/1000

                                                                 = 30.



Hope this helps!

Answer 2

Hi,

Please see the attached file!


Thanks