an important question from the book -ML aggarwal( avichal publication)class 10th , chapter3, shares and dividends ……..
it is given that the money is worth 5%. now we have to find At what price should a 6.25% rupèe 100 share be quoted..
please solve this question as it has appeared in many a time,
Q no. 30, exercise 3, ML Publication, share and dividends
Dividend = 6.25%
Nominal Value = ₹100
Return = 5%
We have to find M.V.
First find the dividend(Income) on 1 share → 6.25% of ₹100( N.V.) = ₹6.25
Now use the formula → Return% = Income or Dividend / Investment * 100
5 = 6.25/M.V. * 100
So, M.V. = 6.25 / 5 * 100 = ₹125