A man buys Rs. $200$ shares paying $10 %$ dividend. The man wants to have an interest of $8 %$ on his money. What is the market value of each share?

150

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250

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350

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450

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Solution

The correct option is D $250$
$\Rightarrow$ Here, we have given, Face value = Rs.200, Dividend = 10% and Interest = 8%.
$\Rightarrow$ Let $x$ be the market value.
$\Rightarrow$ $I n t e r e s t = \frac{D i v i d e n d}{M a r k e t v a l u e} \times F a c e v a l u e$ .
$\Rightarrow$ $8 = \frac{10}{x} \times 200$
$\Rightarrow$ $x = 200 \times \frac{10 %}{8 %}$
$\Rightarrow$ $x = R s . 250$
$∴$ Market value is $R s .250$ .

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A man buys Rs. 200 shares paying 10% dividend. The man wants to have an interest of 8% on his money. What is the market value of each share?

The correct option is D 250⇒ Here, we have given, Face value = Rs.200, Dividend = 10% and Interest = 8%.⇒ Let x be the market value.⇒ Interest=DividendMarketvalue×Facevalue.⇒ 8=10x×200⇒ x=200×10%8%⇒ x=Rs.250∴ Market value is Rs.250.

A man buys Rs. $200$ shares paying $10 %$ dividend. The man wants to have an interest of $8 %$ on his money. What is the market value of each share?