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DARE TO SHAREAdi wants to start a company, M/s Unisev Tattoos Limited,with 6 friends as above. Adi invests Rs. 400 and invites thefriends to invest Rs. 100 each, to which all the friends agree.Thus, the total capital of the company would be Rs._____.This amount is called the equity of the company.Adi decides to split the equity of the company into 100 equalparts so that each part is of value Rs.__. Each of these 100equal parts is called an equity share (or simply, a share)of the company. Thus, ___ equity shares make the total capitalof Rs._____. Rs.10 is the face value of each share.As each of the six friends pays Rs.100, each of them gets __equity shares. As Adi had invested Rs.400, Adi gets __ equityshares. All of them become the shareholders of the company.Unisev Tattoos carries out operation for about an year andeveryone expects the company to declare some profit at theend of the year.Pratham wants to sell all 10 shares as Pratham needs money,but Pratham expects little more than Rs.100 as the moneywas invested for almost an year. Ashtam is willing to pay Rs.12per share to Pratham as the company is expected to pay someportion of its profit to its shareholders. Rs.12 is the marketvalue of its share i.e. the price at which the shares are nowavailable in the market. Ashtam pays Rs.___ to Pratham andbuys the 10 shares from Pratham.The difference between the market value (if higher than the facevalue) and the face value is the premium. If the market valueis lower than the face value, then the shares are said to be ata discount. Thus, Ashtam pays a ________ of Rs.__ per share.EPS =Theory-WiseNet profit available toordinary shareholdersP/E =Number of ordinaryshares outstandingTheory-WiseMarket Priceper shareEPSFor the whole year the company makes an excellent profitof Rs.500 and decides to distribute Rs.200 to the shareholders.The shareholders, _______, _______, ______, ______,________, _______, and ______, each get a share of theprofit in proportion to their shareholdings at the rate of Rs.___per share. This is called the dividend. Adi, Ashtam, and Prathamwill get dividend for ___, __ , and ____ shares respectively.Dividend is payable on the face value of a share.51