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.


10th Grade Math

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.



New! Comments

Have your say about what you just read! Leave me a comment in the box below. Ask a Question or Answer a Question.