Question

If the face value of a share is rupes 100 and market value is rupes 75 then which of the following statements is correct

(A)The share is at a premium of rupees 175
(B)The share is at discount of rupees 25
(C)The share is at premium of rupees 25
(D)The share is at discount of rupees 75​

Answer 1

the face value of a share is rupes 100 and market value is rupes 75 then which of the following statements is correct

(A)The share is at a premium of rupees 175

(B)The share is at discount of rupees 25

(C)The share is at premium of rupees 25

(D)The share is at discount of rupees 75

Answer 2

Answer:

ANSWER

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