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Question
Write the correct alternative for the following questions.
If the Face Value of a share is Rs 100 and Market value is Rs 75, then which of the following statements is correct ?
Options
The share is at premium of Rs 175
The share is at discount of Rs 25
The share is at premium of Rs 25
The share is at discount of Rs 75
Solution
If MV < FV, then the share is at discount.
Discount = FV − MV = Rs 100 − Rs 75 = Rs 25
So, the share is at discount of Rs 25.
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RELATED QUESTIONS
Mr.Amol purchased 50 shares of Face Value Rs100 when the Market value of the share was Rs 80. Company had given 20% dividend. Find the rate of return on investment.
Joseph purchased following shares, Find his total investment.
| Company A : 200 shares, | FV = Rs 2 | Premium = Rs 18 |
| Company B : 45 shares, | MV = Rs 500 | |
| Company C : 1 share, | MV = Rs 10,540. |
Shri Shantilal has purchased 150 shares of FV Rs 100, for MV of Rs 120. Company has paid dividend at 7%. Find the rate of return on his investment.
Market value of a share is Rs 200. If the brokerage rate is 0.3% then find the purchase value of the share.
Write the correct alternative for the following questions.
What is the amount of dividend received per share of face value Rs 10 and dividend declared is 50%.
Find the purchase price of a share of FV Rs 100 if it is at premium of Rs 30. The brokerage rate is 0.3%.
Prashant bought 50 shares of FV Rs 100, having MV Rs 180. Company gave 40% dividend on the shares. Find the rate of return on investment.
Find the amount received when 300 shares of FV Rs 100, were sold at a discount of Rs 30.
Find the number of shares received when Rs 60,000 was invested in the shares of FV Rs 100 and MV Rs 120.
Smt. Mita Agrawal invested ₹ 10,200 when MV of the share is ₹ 100. She sold 60 shares when the MV was ₹ 125 and sold remaining shares when the MV was ₹ 90. She paid 0.1% brokerage for each trading. Find whether she made profit or loss? and how much?
Market value of shares and dividend declared by the two companies is given below. Face Value is same and it is Rs. 100 for both the shares. Investment in which company is more profitable ?
(1) Company A - Rs 132, 12%
(2) Company B - Rs 144, 16%
Shri Shantilal has purchased 150 shares of FV ₹ 100, for MV of ₹ 120, Company has paid dividend at 7%, then to find the rate of return on his investment, complete the following activity:
Solution: FV = ₹ 100; Number of shares = 150
Market value = ₹ 120
1. Sum investment = MV × No. of Shares
= `square xx square`
∴ Sum investment = ₹ 18,000
2. Dividend per share = FV × Rate of dividend
= `square xx square/100`
= ₹ 7
∴ Total dividend received = 150 × 7
= `square`
3. Rate of return = `"Dividend income"/"Sum inve ted" xx 100`
= `1050/18000 xx 100`
= `square`
If FV = ₹ 460 and premium = ₹ 165, then what is the value of MV?
