Question

Smt. Deshpande purchased shares of FV Rs. 5 at a premium of Rs 20. How many shares will shi get for Rs 20000?​

Answer 1

SOLUTION:-FV=RS.5
PREMIUM=RS.20,MARKET VALUE=PREMIUM+FV=20+5=₹25
NO. OF SHARES= TAXABLE INCOME/MARKET VALUE.
=20000/20
=₹1000

Answer 2

Answer:

Market value of each share = FV + Premium = Rs 5 + Rs 20 = Rs 25

Sum invested = Rs 20,000

∴ Number of shares = Sum invested/Market value of each share=20000/25 = 800

Thus, the number of shares purchased by Smt. Deshpande are 800.