Question

If the face value of a share is ` 10 and it is traded at a 19% premium, then its market price is _____.
A` 19
B` 10.19
C` 11.9
D` 8.1​

Answer 1

Answer:

A) 19 .

10/19*100 = 19 .

Hope this helps you.........

Answer 2

given a share's face value and premium percentage at which is traded, find its market price

Explanation:

1. if a share has face value $F.V$ and market value $M.V$ then the share is said to be at premium if its market value is more than its face value that is $M.V>F.V$ and premium value denoted by P is given as, $P=M.V-F.V$ .
2. here given is premium rate of $19\%$ and $F.V=10$  than premium value can be evaluated as,                                                      $P=F.V(\frac{19}{100} )\\ =10(\frac{19}{100})\ \ \ \ \ \ =>P=1.9$  
3. now the market value $M.V$ is given by , $M.V=F.V+P$ $=11.9$