Rs.40 shares of a company are
selling at 25% premium.If
Mr.Jacob wants to buy 280
shares of the company,then
the investment required by
him is
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Given: Rs 40 shares of a company are selling at 25% premium.
To find: The investment required by Jacob ?
Solution:
- Now we have given that Rs 40 shares of a company are selling at 25% premium.
- So face value of each share is Rs 40
- Then the MV will be:
FV x 125/100
40 x 5/4
10 x 5
Rs 50
- Now number of shares given are 280, so:
- Total investment will be:
Rs 50 x 280 = Rs 14000
Answer:
So the investment required by him is Rs 14000.
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