By investing `7500rs` in a company paying 10 percent dividend, an annual income of `500rs` is received. What price is paid for each of `100rs` share ?

Answer

To solve the problem step by step, we will follow the logic outlined in the video transcript.

### Step 1: Understand the given information
We know:
- Total investment = ₹7500
- Dividend rate = 10%
- Annual income from dividends = ₹500
- Nominal value of each share = ₹100

### Step 2: Let the number of shares purchased be \( y \)
We will denote the number of shares purchased as \( y \).

### Step 3: Calculate the nominal value of the shares
The nominal value for \( y \) shares can be calculated as:
\[ \text{Nominal value for } y \text{ shares} = 100 \times y = 100y \]

### Step 4: Set up the equation for dividends
Since the dividend is 10% of the nominal value, we can express the dividend received as:
\[ \text{Dividend} = 10\% \text{ of } 100y = \frac{10}{100} \times 100y = 10y \]
We know that the annual income from dividends is ₹500, so we can set up the equation:
\[ 10y = 500 \]

### Step 5: Solve for \( y \)
To find the number of shares \( y \), we solve the equation:
\[ y = \frac{500}{10} = 50 \]
Thus, the number of shares purchased is \( y = 50 \).

### Step 6: Calculate the market value of each share
The market value of one share can be calculated using the formula:
\[ \text{Market value per share} = \frac{\text{Total investment}}{\text{Number of shares}} = \frac{7500}{50} \]

### Step 7: Perform the calculation
Calculating the market value:
\[ \text{Market value per share} = \frac{7500}{50} = 150 \]

### Final Answer
The price paid for each ₹100 share is ₹150.

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