A dividend of 12% was declared on ₹ 100 share selling at a certain price. If the rate of return is 8%. Then the market value of share is ₹ ___

120

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100

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150

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100

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Solution

The correct option is C
150

Rate of return $\times$ M.V=Dividend rate $\times$ N.V

$\frac{8}{100} \times M . V = \frac{12}{100} \times 100$

M.V = ₹ 150.

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A dividend of 12% was declared on ₹ 100 share selling at a certain price. If the rate of return is 8%. Then the market value of share is ₹ ___

The correct option is C 150 Rate of return × M.V=Dividend rate × N.V 8100×M.V=12100×100 M.V = ₹ 150.

The correct option is C
150

Rate of return $\times$ M.V=Dividend rate $\times$ N.V

$\frac{8}{100} \times M . V = \frac{12}{100} \times 100$

M.V = ₹ 150.