Joseph purchased following shares, Find his total investment.
Company A:Premium = Rs. 18We know that if MV > FV, then the share is at premium.∴ MV = FV + Premium⇒ MV = 2 + 18 = Rs.20We know that investment = number of shares × MV∴ Investment in company A = 200 × 20= Rs. 4000 Company B:∴ Investment in company B = 45 × 500= Rs. […]
Amol purchased 50 shares of Face Value Rs. 100 when the Market value of the share was Rs. 80. Company had given 20% dividend. Find the rate of return on investment.
Given FV = Rs. 100; MV = Rs. 80; D = 20%On investment of Rs. 80, Amol got Rs. 20.Let rate of return be x%.20/80 = x/ 100¼ = x/100x = 100/4⇒ x = 25% (Rate of Return)
Complete the following table by writing suitable numbers and words.
(1) Given that if MV = FV, then the share is at par.Here, FV = Rs. 100∴ MV = Rs. 100 (2) Given that if MV > FV, then the share is at premium.∴ FV = MV – Premium⇒ FV = 575 – 500 = Rs. 75 (3) Given that FV = Rs. 10 and MV = Rs.3⇒ FV – MV […]