A man buys ₹20 shares paying $9 %$ dividend. The man wants to have an interest of $12 %$ on his money. How much is the market value of each share?
[1 Mark]

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Solution

Given,
Rate of Interest = 12%
Dividend % = 9%
Face value = ₹20

We know,

Rate of Interest $\times$ Market value = Dividend % $\times$ Face value
(0.5 Marks)

12% $\times$ Market value = 9% $\times$ ₹20
Market value $= 9$ % $\times$ ₹20 $\div 12$ %
= $\frac{9}{100}$ $\times$ ₹20 $\times$ $\frac{100}{12}$ = ₹15

$∴$ The market value of each share is ₹15.
(0.5 Marks)

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A man buys ₹20 shares paying 9% dividend. The man wants to have an interest of 12% on his money. How much is the market value of each share? [1 Mark]

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)

A man buys ₹20 shares paying $9 %$ dividend. The man wants to have an interest of $12 %$ on his money. How much is the market value of each share?
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