A company declared a dividend of 14%. Find tire market value of Rs. 50 shares if the return on the investment was 10%.
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
Lido
Courses
Quick Links
Terms & Policies
Terms & Policies