What is the market value of 4*1/2% (Rs 100) share, when an investment of Rs 1800 produces an income of Rs 72?

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Solution

Face value of a share = Rs 100

And

Dividend per share = Rs 4.5 ( As given 4.5% stock )

And

Rs.1800 produces an income of Rs.72

To get earning of Rs. 4.5 , investment required = (1800 × 4.5)/72 = 25 × 4.5 = 112.5

Therefore,

Market value of given share = Rs . 112.5

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What is the market value of 4*1/2% (Rs 100) share, when an investment of Rs 1800 produces an income of Rs 72?

Face value of a share = Rs 100 And Dividend per share = Rs 4.5 ( As given 4.5% stock ) And Rs.1800 produces an income of Rs.72 To get earning of Rs. 4.5 , investment required = (1800 × 4.5)/72 = 25 × 4.5 = 112.5 Therefore, Market value of given share = Rs . 112.5

Face value of a share = Rs 100

And

Dividend per share = Rs 4.5 ( As given 4.5% stock )

And

Rs.1800 produces an income of Rs.72

To get earning of Rs. 4.5 , investment required = (1800 × 4.5)/72 = 25 × 4.5 = 112.5

Therefore,

Market value of given share = Rs . 112.5