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

**Solution:**

Rate of dividend = 14%

Dividend on Rs. 50 = = Rs 7

Now Rs. 10 is interest on the investment of

= Rs. 100

Rs. 7 will be the interest on

= = Rs. 70

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

#### At what price should a 6.25% Rs. 100 shares be quoted when the money is worth 5%?

**Solution:**

Interest on Rs. 100 worth = Rs. 5

If interest is Rs. 5, then market value = Rs. 100

and if interest is Rs. 6.25, then market value

Market value of each share = Rs. 125 Ans.