Question

Find the market price of 5% share when a person gets a dividend of Rs 65 by investing Rs. 1430.

Answer 1

Amount of dividend = Rs.65
Rate of dividend = 5%
∴ Total face value

= `(65 xx 100)/(5)`
= Rs.1300
If face value is Rs.1300, then market value
= Rs.1430
and if face value is Rs.100, then market value

= `(1430 xx 100)/(1300)`
= Rs.110.