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

Answer:

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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