By investing Rs 10,000 in the shares of a company, a man gets an income of Rs 800, the dividend being 10%. If the face-value of each share is Rs 100, Find:
the market value of each share.

Answer

To solve the problem step by step, we will follow these calculations:

### Step 1: Understand the given information
- Investment = Rs 10,000
- Income from dividends = Rs 800
- Rate of dividend = 10%
- Face value of each share = Rs 100

### Step 2: Calculate the number of shares
We know that:
\[ \text{Income} = \text{Number of Shares} \times \text{Face Value} \times \left(\frac{\text{Rate of Dividend}}{100}\right) \]

Rearranging the formula to find the number of shares:
\[ \text{Number of Shares} = \frac{\text{Income}}{\text{Face Value} \times \left(\frac{\text{Rate of Dividend}}{100}\right)} \]

Substituting the values:
\[ \text{Number of Shares} = \frac{800}{100 \times \left(\frac{10}{100}\right)} \]

Calculating:
\[ \text{Number of Shares} = \frac{800}{100 \times 0.1} = \frac{800}{10} = 80 \]

### Step 3: Calculate the market value of each share
We know that:
\[ \text{Investment} = \text{Market Value of Each Share} \times \text{Number of Shares} \]

Rearranging the formula to find the market value:
\[ \text{Market Value of Each Share} = \frac{\text{Investment}}{\text{Number of Shares}} \]

Substituting the values:
\[ \text{Market Value of Each Share} = \frac{10,000}{80} \]

Calculating:
\[ \text{Market Value of Each Share} = 125 \]

### Final Answer
The market value of each share is Rs 125.

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