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the face value of a share is Rs 10 .It is at a premium of Rs 5 .What is the market value of the sahre ? |
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Answer» The MARKET value of the share is Rs 15. Given, the face value (FV) of 1 share = Rs 10 For a premium, its market value will increase, and similarly for a discount on the face value of shares, its market value will decrease. Given, premium value = Rs 5. So, for 1 share, its market value (MV) = Face value (FV) + Premium value = Rs 10 + Rs 5 = Rs 15. At a premium of Rs 5, the market value of the share WHOSE face value is Rs 10, will be Rs 15.
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