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

This type of question has been asked in paper. so please solve it in detail.

we have been asked At what price should a 6.25% rupèes 50 share be quoted on the condition the money is worth 10%.

Q no. 31, exercise 3, ML Publication, share and dividends

Given-

Dividend = 6.25%

Nominal Value = Rs 50

Return = 10%

We have to find M.V.

First find the dividend(Income) on 1 share → 6.25% of Rs.50( N.V.) = Rs.3.125

Now use the formula → Return% = (Income or Dividend / Investment )* 100

5 = 3.125/M.V. * 100

So, M.V. = (3.125 / 10 )* 100 = Rs. 31.25