Question

How much money will be required to buy 400 shares id nominal value is Rs 12.50 per share at a premium of Rs 1?

Answer 1

Number of Shares(n) = 400

Nominal Value of One Share (N.V.) = Rs 12.50

Market Value of One Share(M.V.) = N.V. of One Share + Premium
= 12.50 + 1
= Rs. 13.50

Sum Invested(Money Required) = Number of Shares $\times$ M.V. of 1 Share
= 400 $\times$ 13.50
= Rs. 5400

Thus, the money required to buy 400 shares is Rs. 5400.