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Shares and Dividends | Shares and Dividends Exercise 3

Question 34

A company declared a dividend of 14%. Find tire market value of Rs. 50 shares if the return on the investment was 10%.

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Rate of dividend = 14%

Dividend on Rs. 50 = (14 x 50)/ 100 = Rs 7

Now Rs. 10 is interest on the investment of = Rs. 100

Rs. 7 will be the interest on = (100 x 7)/ 10 = Rs. 70

Hence Market value of Rs. 50 shares = Rs. 70

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Our top 5% students will be awarded a special scholarship to Lido.

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Question 34

A company declared a dividend of 14%. Find tire market value of Rs. 50 shares if the return on the investment was 10%.

Looking to do well in your science exam ? Learn from an expert tutor. Book a free class!

Rate of dividend = 14%

Dividend on Rs. 50 = (14 x 50)/ 100 = Rs 7

Now Rs. 10 is interest on the investment of = Rs. 100

Rs. 7 will be the interest on = (100 x 7)/ 10 = Rs. 70

Hence Market value of Rs. 50 shares = Rs. 70

Our top 5% students will be awarded a special scholarship to Lido.

subject-cta
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