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Shyam purchased 12000 shares of a company, of par value $ 10 each, paying an annual dividend of 15% at such a price that she gets 10% on her investment. Find the market value of a share.
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- $ 25
- $ 15
- $ 20
- $ 24
Correct Option: B
Here , Face value of each share = $ 10
Number of share = 12000
Par value of 12000 shares = Number of share x Face value of each share
= $ (12000 × 10) = $ 120000
Dividend received by Shyam = 15% of Par value of 12000 shares
| = $ |  | x 120000 |  | 100 |
= $ 18000
Let, the market value of 12000 shares be $ x.
We have to find x such that 10% of x = 18000
| ⇒ | 10 | × x = 18000 |  |
| 100 |
⇒ x = 18000 × 10 = 180000
i.e., Market value of 12000 shares = $ 180000.
Hence, the market value of one share
| = $ | | | Number of share |
| = $ | | | = $ 15. | 12000 |
