156k views
5 votes
Rs. 10 shares of a certain company of which the nominal value is Rs. 8,000 can be purchased by investing Rs. 7,200. What is the market value of such a share ?

User Sturrockad
by
7.3k points

1 Answer

6 votes

Final answer:

To calculate the market value of a share, the total investment of Rs. 7,200 should be divided by the number of shares, which is 800. The market value per share is therefore Rs. 9.

Step-by-step explanation:

The student is asking about the calculation of market value of a share. If Rs. 10 shares with a nominal value of Rs. 8,000 can be purchased by investing Rs. 7,200, to find the market value of a share, we need to determine how many shares were bought and then divide the total investment by the number of shares. Here is the step-by-step explanation:

Calculate the number of shares by dividing the nominal value by the value per share: Rs. 8,000 ÷ Rs. 10 = 800 shares.

Calculate the market value per share by dividing the total investment by the number of shares: Rs. 7,200 ÷ 800 shares = Rs. 9.

Therefore, the market value for each share is Rs. 9.

User Ethan Yang
by
8.1k points