Question

smt.deshpande purchased share of FV Rs 5 at a premium of Rs 20. how many shares will she get for Rs 20000?

Answer 1

Here Smt. Deshpande invested 20000 rupees for purchasing shares.

The shares were sold at a premium.

Face value of each share = 5 rs.

Premium                              = 20 Rs.

Hence the amount Smt. deshpande paid for each share = face value + premium

=5+20 = 25

She paid 25 rupees for each share and total amount paid is 20000 rs.

No of shares she purchased = 20000/25 = 800

Answer is 800 shares.

Answer 2

This is your answer.