Write the correct alternative for the following question. If the … - Vidyadip

Question

Write the correct alternative for the following question.
If the Face Value of a share is Rs. 100 and Market value is Rs. 75,then which of the following statements is correct?
A. The share is at premium of Rs. 175
B. The share is at discount of Rs. 25
C. The share is at premium of Rs. 25
D. The share is at discount of Rs. 75

✓

Answer

Market value = Rs. 75

Face Value = Rs. 100

If the market value is at a lower price than the face value then the share is in a discount.

Discount = (Face value-Market value) = Rs. 25
(A) The share is at premium Rs. 175 is wrong
(B) The share is at a discount of Rs. 25 is correct
(C) The share is at a premium of Rs. 25 is wrong
(D) The share is at discount of Rs. 75 is wrong
Hence, only B is correct

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