Problems on Income and Return from Shares
We will discuss here some of the problems on income and return from shares.
1. Matthew invested $ 67200 in $ 100 shares which are quoted at $ 120. Calculate the income if 12% dividend is declared on the shares.
Solution:
Total sum invested = $ 67200 and market value (M.V.) of each share = $ 120.
Therefore, number of shares bought = \(\frac{$ 67200}{$ 120}\) = 560
According to the problem, dividend on 1 share = 12% of face value/nominal value.
= 12% of $ 100
= $ 12
Therefore, the total income from the shares = 560 × $ 12 = $ 6720
2. Mr. Ryan bought 50 shares, each of nominal value $ 100.
After one year he received $ 400 as dividend against them. Find the rate of
dividend on his shares.
Solution:
The dividend on one share = \(\frac{$ 400}{50}\) = $ 8.
Therefore, the dividend was $ 8 on a share of face value or nominal value $ 100.
Therefore, the rate of dividend = \(\frac{$ 8}{$ 100}\) × 100 % = 8%
3. Calculate the dividend due at the end of a year on 250 shares of $ 50 each, if the half-yearly divided is 4 % of the value share.
Solution:
Given, half-yearly dividend on 1 share = 4% of $ 50
Therefore, the yearly dividend on 1 share = 8% of $ 50
= \(\frac{8}{100}\) × $ 50
= $ 4
Total dividend due at the end of the year = 250 × $ 4 = $ 1000
4. A company declares semi-annual dividend of 6 %. Christian has 500 shares of face value/nominal value $ 25 each. Find Christian's annual income.
Solution:
Total nominal value of shares = $ 25 × 500 = $ 12500
Therefore, semi-annual dividend = 6 % of $ 12500
= \(\frac{6}{100}\) × $ 12500
= $ 750.
Therefore, his annual income = $ 750 × 2 = $ 1500.
● Shares and Dividends
- Share and Value of Shares
- Dividend and Rate of Dividend
- Calculation of Income, Return and Number of Shares
- Problems on Income and Return from Shares
- Problems on Shares and Dividends
- Worksheet on Basic Concept on Shares and Dividends
- Worksheet on Income and Return from Shares
- Worksheet on Share and Dividend
From Calculation of Income, Return and Number of Shares to HOME
Didn't find what you were looking for? Or want to know more information about Math Only Math. Use this Google Search to find what you need.
Recent Articles
-
Dividing 3-Digit by 1-Digit Number | Long Division |Worksheet Answer
Apr 24, 24 03:46 PM
Dividing 3-Digit by 1-Digit Numbers are discussed here step-by-step. How to divide 3-digit numbers by single-digit numbers? Let us follow the examples to learn to divide 3-digit number by one-digit nu… -
Symmetrical Shapes | One, Two, Three, Four & Many-line Symmetry
Apr 24, 24 03:45 PM
Symmetrical shapes are discussed here in this topic. Any object or shape which can be cut in two equal halves in such a way that both the parts are exactly the same is called symmetrical. The line whi… -
Mental Math on Geometrical Shapes | Geometry Worksheets| Answer
Apr 24, 24 03:35 PM
In mental math on geometrical shapes we will solve different type of problems on simple closed curves, polygons, basic geometrical concepts, perpendicular lines, parallel lines, circle, terms relates… -
Circle Math | Terms Related to the Circle | Symbol of Circle O | Math
Apr 24, 24 02:57 PM
In circle math the terms related to the circle are discussed here. A circle is such a closed curve whose every point is equidistant from a fixed point called its centre. The symbol of circle is O. We… -
Fundamental Geometrical Concepts | Point | Line | Properties of Lines
Apr 24, 24 12:38 PM
The fundamental geometrical concepts depend on three basic concepts — point, line and plane. The terms cannot be precisely defined. However, the meanings of these terms are explained through examples.