shares of company are available at a premium of₹40(par value ₹100).what is the market price of one buy for ₹14 ,000?
Answers
Answer:good ques...
Step-by-step explanation:he statement r% Rs 100 shares at Rs M means the following:
The NV of a share is Rs 100.
The MV of a share is Rs M.
The dividend on a share is r% of NV, i.e., Rs r per annum.
An investment of Rs M gives an annual income of Rs r.
Rate of return per annum = Annual income from an investment of Rs 100 =(\dfrac{Income}{Investment} \times 100) \%=(\dfrac{r}{M} \times 100)\%
Look at the statement given below:
9% Rs 100 shares at Rs 120 means
Face value (NV) of 1 share = Rs 100.
Market value (MV) of 1 share = Rs 120.
The dividend on a share is 9% of its face value = 9% of Rs 100 = Rs 9
An investment of Rs 120 gives an annual income of Rs 9.
Rate of return per annum = Annual income from an investment of Rs 100 =(\dfrac{Income}{Investment} \times 100) \%=(\dfrac{9}{120} \times 100) \%=7\dfrac{1}{2} \%