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**

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