Given,
Rate of Interest = 12%
Dividend % = 9%
Face value = ₹20
We know,
Rate of Interest × Market value = Dividend % × Face value
(0.5 Marks)
12% × Market value = 9% × ₹20
Market value =9% × ₹20 ÷ 12%
= 9100×₹20×10012 = ₹15
∴ The market value of each share is ₹15.
(0.5 Marks)