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Question
Ankita purchased the following shares: Total investment of Ankita is ₹_____.
YEC Bank : Number of shares = 500 shares, Face value = ₹2, Premium = ₹23
Keliance : Number of shares = 50 shares, Market value = ₹610.
Ankita purchased the following shares: Total investment of Ankita is ₹_____.
YEC Bank : Number of shares = 500 shares, Face value = ₹2, Premium = ₹23
Keliance : Number of shares = 50 shares, Market value = ₹610.
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Solution
The correct option is D 43,000
Market value of each share of YEC Bank
= FV + Premium
= ₹2 + ₹23 = ₹25
Investment in YEC Bank
= Number of shares of YEC Bank × MV of each share of YEC Bank
= 500 × 25
= ₹12,500
Investment in Keliance
= Number of shares of Keliance × MV of each share of Keliance
= 50 × 610
= ₹30,500
∴ Total investment = Investment in YEC Bank + Investment in Keliance
= ₹12,500 + ₹30,500
= ₹43,000
Thus, the total investment of Ankita is ₹43,000.
Market value of each share of YEC Bank
= FV + Premium
= ₹2 + ₹23 = ₹25
Investment in YEC Bank
= Number of shares of YEC Bank × MV of each share of YEC Bank
= 500 × 25
= ₹12,500
Investment in Keliance
= Number of shares of Keliance × MV of each share of Keliance
= 50 × 610
= ₹30,500
∴ Total investment = Investment in YEC Bank + Investment in Keliance
= ₹12,500 + ₹30,500
= ₹43,000
Thus, the total investment of Ankita is ₹43,000.
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