Question

the market value of the share.

• A. Rs. 50
• B. Rs. 505
• C. Rs. 507
• D. Rs. 52

Answer 1

Answer: (A)

Rs. 50

Rate of dividend=10%

Return%=12%

Face value=Rs.60

Market Value$=\frac{\text{Rate of dividend}\times \text{Face value}}{Return}$

$\Rightarrow \frac{10\times 60}{12}=Rs.50$