 Hello and welcome to the session. In this session, we will discuss the following question, and the question says, a dividend of 9% was declared on $100 share, selling at a certain price. If the rate of return is 7.5%, calculate the market value of the share. Let's start the solution now. We have to calculate the market value of the share. First, we will do an assumption. Let market value of the share is equal to x dollars. Now, since we know that rate of return into market value is equal to rate of dividend into nominal value and we are given that rate of return is 7.5%. Rate of dividend is 9% and nominal value is 100 dollars. So, this implies rate of return which is 7.5% that is 7.5 upon 100 into the market value which we have assumed to be x dollars is equal to rate of dividend which is 9 upon 100 into the nominal value which is 100 dollars. Now, these zeros get cancelled on the right-hand side and this implies x is equal to 9 into 100 upon 7.5. Now, we remove this decimal that is we add 10 in the numerator. Now, 3 times is 9 and 25 times is 75 also 25, 30 times is 1000. So, this is equal to 3 into 40 that is 120. So, this implies x is equal to 120 dollars hence market value is equal to 120 dollars and this is the final answer. With this we end our session. Hope you enjoyed the session.