Practice the questions given in the worksheet on income and return from shares.
1. William bought $ 40 shares at a premium of 40%. Find the income, if William invests $ 14000 in these shares and receives a dividend at the rate of 8% on the nominal value of the shares.
2. Mr. Ryan Invests $ 30,000 in buying shares of a company which pays a 12 % dividend annually on hundred-dollar shares selling at a premium of $ 50. Find
(i) the number of shares bought by Mr. Ryan, and
(ii) his annual income from the shares.
3. Matthew bought $ 40 shares at a discount of 40%. Find the income, if he invests $ 12000 in these shares and receives a dividend at the rate of 11% on the nominal value of the shares.
4. Mr. Jacob invests $ 15840 in buying shares of nominal value $ 24 selling at a premium of 10%. The company pays a 15% dividend annually. Find
(i) the dividend he receives annually, and
(ii) the rate of return from his investment.
5. Michael buys 400, twenty-dollar shares at a discount of 20 % and receives a return of 12% on his money. Calculate:
(i) the amount invested by Michael.
(ii) the rate of dividend paid by the company.
6. Mason bought 1000 hundred-dollar shares from the stock market carrying 8% dividend quoted at $ 130. A few days later the market value of the shares went up by 10%. Mason sold all his shares. What was his income from this transaction?
7. Mr. Ryan invests $ 20800 in 6% $ 100 shares at $ 104, and $ 14300 in 10.5% $ 100 shares at $ 143. What will be his annual income from the shares?
8. A company declares a semi-annual dividend of 5%. Daniel has 400 shares of company. If Daniel’s annual income from the shares is $ 1000, find the face value of each share.
9. Benjamin buys 400, twenty-dollar shares at a premium of $ 4 each and receives a dividend of 12%. Find:
(i) the amount invested by Benjamin.
(ii) his total income from the shares.
(iii) percentage return on his money.
10. (b) Alexander buys 350 hundred-dollar shares of a company at a premium of 20% from the market. The company pays 12% dividend annually. Find
(i) the investment made by the Alexander,
(ii) his annual income from the shares, and
(iii) the rate of return from the shares.
Answers for the worksheet on income and return from shares are given below:
1. $ 800
2. (i) 200
(ii) $ 2400
4. (i) 100
(ii) $ 600
5. (i) $ 6400
(ii) 9.6 %
6. $ 13000
7. $ 2250
8. $ 25
9. (i) $ 9600
(ii) $ 960
(iii) $ 10%
10. (i) $ 42000
(ii) $ 4200
(iii) 10 %