Shankar invests ₹ 7800 in ₹ 100 shares of a company paying 12% dividend. If his annual income from these shares is ₹ 720, the market value of each share is ______.

Question

KollegeApply · Accepted Answer

Shankar invests ₹ 7800 in ₹ 100 shares of a company paying 12% dividend. If his annual income from these shares is ₹ 720, the market value of each share is ₹ 130. Explanation: Given: Investment = ₹ 7800 Face value per share = ₹ 100 Dividend = 12% Annual income = ₹ 720 Dividend per share = 12% of ₹ 100 = ₹ 12 Number of shares = $\frac{720}{12}$ = 60 Total investment = ₹ 7800 for 60 shares $\Rightarrow$ Market value per share = $\frac{7800}{60}$ = ₹ 130

AChoose Your Answer