Question

Pardeep buys 1000 shares of par value of Rs. 10 each of a company which

pays annual dividend of 15% at such a price that he gets 5% on his investment.

Find the market value of a share. (2)

Sec

Answer 1

1000×10=10000

10000×15/100= 1500
but A/q
5%= 1500
1%=1500/5
100%=1500×100/5=30000
so market value of each share = 30000/1000=30

Answer 2

The value of the market price of a share is Rs.30.

Given:

1000 shares par value of Rs.10 each.

The dividend received is 15% and gets 5% on the investment.

To Find:

The market value of a share.

Solution:

Here, we have given that the value of one share $=Rs.10$

now, the par value of $1000$ shares $=Rs.1000\times 10=Rs.10,000$

here, the dividend which is received by Pardeep $=15\%$

now, the $15\% of 10,000$

$=Rs.10,000\times \frac{15}{100}$

$=Rs.1500$

Let's suppose the value of a share of the market price be $Rs.x$

now, the market value of $1000$ shares is $Rs.1000x$

here, the dividend of Pardeep is $5\%$ of his investment.

now, $1000x\times \frac{5}{100}$

$=50x=1500$

now the value of $x=Rs.30$.

Hence, the value of the market price of a share is Rs.30.