an important question from the book -ML aggarwal( avichal publication)class 10th , chapter3, shares and dividends ……..

we are given that A company declared a dividend of 14%.

we have to Find tire market value of Rs. 50 shares , condition is given that the return on the investment was 10%.

explain it in easy way.

Q no. 29, exercise 3, ML Publication, share and dividends

Given :

A company declared a dividend of 14%

The face value = Rs 50

The percentage of return investment = 10%

To Find :

The market value of Rs 50 share

Solution :

Let The market value = Rs x

∵ Face value of 1 share = Rs 50

Now, dividend on 1 share = 14% of Rs 50

= × Rs 50

= Rs 7

Now,

percentage of return investment × market value = dividend on 1 share

i.e 10 % of Rs x = Rs 7

Or, × x = Rs 7

∴ x =

i.e market value = x = Rs 70

Hence, The market value of Rs 50 shares is Rs 70 .