Gaurav holds 5,000 equity shares in Real Ltd. The nominal and paid-up capital of the company is as follows: 20,000 equity shares of ₹1 each 10,000, 5% preference shares of ₹1 each (non-participative in further profits).

Gaurav holds 5,000 equity shares in Real Ltd. The nominal and paid-up capital of the company is as follows: 20,000 equity shares of ₹1 each 10,000, 5% preference shares of ₹1 each (non-participative in further profits). It is ascertained that : The normal profit of such a company is ₹5,000; and The normal rate of return by way of dividend on the paid-up value of equity share capital for the type of business carried out by the company is 8%. Gaurav requests you to value the yield price for his shareholding based upon the above information.