A dividend of 9% was declared on 100 shares
selling at a certain price. If the rate of return is
7%, calculate :
(i) the market value of the share.
(ii) the amount to be invested to obtain an annual
dividend of 630.

(i) To find the market value of one share, we use the formula:

Market Value = Dividend per share / (Rate of return / 100)

Given a dividend of 9% per share and a rate of return of 7%, we have:

Market Value = (9% of face value) / (7 / 100)
Assuming the face value is $100 (since it's 100 shares), the dividend per share is $9 (9% of $100).

Market Value = $9 / 0.07 = $128.57 approximately.

(ii) To calculate the amount to be invested for an annual dividend of $630:

Amount Invested = Annual Dividend / (Dividend Rate / 100)
Amount Invested = $630 / (9 / 100) = $7000

So, the market value of one share is approximately $128.57, and you'd need to invest about $7000 to get an annual dividend of $630.

A dividend of 9% was declared on 100 shares selling at a certain price. If the rate of return is 7%, calculate : (i) the market value of the share. (ii) the amount to be invested to obtain an annual dividend of 630.

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A dividend of 9% was declared on 100 shares
selling at a certain price. If the rate of return is
7%, calculate :
(i) the market value of the share.
(ii) the amount to be invested to obtain an annual
dividend of 630.