A company declared a dividend of 14%.

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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%.

Solution:

Rate of dividend = 14%
Dividend on Rs. 50 = \\ \frac { 14\times 50 }{ 100 } = Rs 7
Now Rs. 10 is interest on the investment of
= Rs. 100
Rs. 7 will be the interest on
= \\ \frac { 100\times 7 }{ 10 } = 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
ML Aggarwal Class 10 Solutions for ICSE Maths Chapter 3 Shares and Dividends Ex 3 Q30.1
Market value of each share = Rs. 125 Ans.

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