Question

if the face value of a share is rs 100 and market value is rs 75 then which statement is correct
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Answer 1

Face Value of share = Rs. 100

Face Value of share = Rs. 100Market Value of share = Rs. 75

Face Value of share = Rs. 100Market Value of share = Rs. 75FV > MV, ∴ Share is at a discount.

Face Value of share = Rs. 100Market Value of share = Rs. 75FV > MV, ∴ Share is at a discount.FV−MV =100−75=25

Face Value of share = Rs. 100Market Value of share = Rs. 75FV > MV, ∴ Share is at a discount.FV−MV =100−75=25⇒ The share is at a discount of Rs. 25

Answer 2

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Face Value of share = Rs. 100

Market Value of share = Rs. 75

FV > MV,

∴ Share is at a discount.

FV−MV =100−75=25

⇒ The share is at a discount of Rs. 25

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