Question

Market value of share is $Rs.25$. The premium offered is $12$% and dividend is $15$%. What is the par value?

• A. $22.32$
• B. $23.2$
• C. $24.3$
• D. None

Answer 1

Answer: (A)

$22.32$

$MV=PV(1+\frac{premiumpercent}{100})$
$25=PV(1+\frac{12}{100})$
$PV=\frac{25\times 100}{112}$
$PV=22.32$