Question

The face value of a share is 10. It is at a premium of 5. What is the market value of the share?​

Answer 1

The market value of the share is Rs 15.​

Given, the face value (FV) of 1 share  = Rs 10

For a premium, its market value will increase, and similarly for a discount on the face value of shares, its market value will decrease.

Given, premium value = Rs 5.

So, for 1 share, its market value (MV) = Face value (FV) + Premium value

= Rs 10 + Rs 5

= Rs 15.

At a premium of Rs 5, the market value of the share whose face value is Rs 10, will be Rs 15.