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A share has a Face Value of \( ₹10 \) and is at a premium of \( ₹7 \). What is its Market Value?

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Question

A share has a Face Value of \( ₹10 \) and is at a premium of \( ₹7 \). What is its Market Value?

Options

  • \[ ₹ 3 \]

  • \[ ₹ 70 \]

  • \[ ₹ 7 \]

  • \[ ₹ 17 \]

MCQ
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Solution

Market Value (MV) = FV + Premium = \[ 10 + 7 = ₹ 17 \]. Since MV > FV, the share is at a premium of ₹7.

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