Answer:
The market price will be 125 Rs.
Step-by-step explanation:
Given: Amount of dividend = 200 Rs., rate of dividend = 5%
We have to find the Market price of a 5% share when a person gets Rs 200 by investing Rs 5000.
We are solving in the following way:
We have,
Amount of dividend = 200 Rs.,
Rate of dividend = 5%
So, the total face value will be:
[tex]=>\frac{200\times100}{5} \\\\=>\frac{20000}{5} \\\\=>4000[/tex]
Hence, the face value will be 4000Rs.
If the face value is 4000Rs, then market value = 5000Rs.
And if the face value is RS 100, then the market value will be:
[tex]=>\frac{5000\times100}{4000} \\\\=>\frac{500000}{4000} \\\\=>125[/tex]
Hence, the market price will be 125 Rs.