If your friends company has 5,00,000 shares and you invest Rs. 10 lakhs (10,000,000) for 10% of the company, what will be the price per share that you pay?

why is the answer 20~, that means all investor must pay different price per share? because what i know is that price of share equal total amount of share(capital) divided by number of share>>> please clarify me

1 Answer(s)


Number of shares = 5,00,000
Investment = 10,00,000
Ownership = 10%
So you will own .1 x 5,00,000 shares = 50,000 shares.
And you paid 10,00,000 for 50,000 shares, so price per share is 10,00,000/50,000