Shares and Dividends 2022

Assumption college Samutprakarn By
ACSP Online Education

Mathematics Department TK
Summer School
 Geometry: loci and constructions  Co-ordinate geometry
Semester1/2022
 Commercial Mathematics
 Probability
 Statistics
English for Mathematics(MLP +ICSE )

Secondary 4 (M.4)
Summer 2022 By
 Ratios and Proportion
 Progressions TK
Semester  Commercial Mathematics

 Goods and services tax (GST)
1/2022  Compound interest

 Banking: recurring deposit account (R.D.)
 Shares and dividends

Secondary 4 (M.4)
Semester By
1/2022 TK
Learning  Shares and

Outcomes/Objective: (Year/level
Indicators)
Understand commercial
mathematics (Goods and
Dividends
Services Tax (GST) Compound
Interest, Banking: Recurring, Shares
and Dividend) which can be
applied.

Secondary 4 (M.4)
What is Dividend?
A dividend is a distribution Various key words
of profits by a corporation to
its shareholders. Profits  Return rate
Earnings per share
 Dividend rate
Dividend (payout) Ratio
 Dividend Per Share (DPS)
Dividend Yield
Annual Dividends
English for Mathematics(MLP+ICSE)

How to calculate Dividend?
Earning of a company
Rate of
Dividend rate = dividends = Dividend % = Dividends per share × 100
Norminal value
Total Dividends =?
Dividends =

 Commercial Mathematics: Shares and Dividends
Example 1: Find the annual income(Divdend) derived from 125, Rs.120 shares
paying 5% dividend.
Solution

Example 1: Alexander bought some shares of Rs.10 at par value which yields 5%
divided per annum. At the end of one year he received Rs. 4,000 as
dividend. How many shares did he buy?
Solution

Example 2 :A man invests Rs 7,770 in a company paying 5% dividend when a
share of nominal value of Rs 100 sells at a premium of Rs 5. Find:
(i) the number of shares bought; (ii) annual income; (iii) percentage
income.
Solution

Example 2 :A man invests Rs 7,770 in a company paying 5% dividend when a
(i) the number of shares bought; (ii) annual income;(iii) percentage
income.
Solution

Example 4: A man buys Rs 50 shares of a company, paying 12% dividend, at a
premium of Rs 10. Find:
(i) the market value of 320 shares;
Solution (ii) his annual income

Example 5: A man has 300, Rs 50 shares of a company paying 20% dividend.
Find his net income after paying 3% income tax.
Solution

More ICSE Past Examination
4. [2019] A man invests Rs 4500 in shares of a company which is paying 7.5% dividend. If
Rs 100 shares are available at a discount of 10%. Find
(i) Number of shares he purchases.
(ii) His annual income.
Mathematics(MLP+ICSE
English for
5.[2019] Sachin invests Rs.8500 in 10%, Rs.100 shares at Rs.170. He sell the shares when the
price of ach share rise by Rs.30. He invests the proceeds in 12%, Rs.100 shares at
Rs.125. Find
(i) the sale proceeds .
(ii) the number of Rs.125 shares he buys.
(iii) In change in his annual income.
English for
6. [2018] A man invests Rs.22,500 in buying Rs.50 shares available at 9% discount . I the
dividend pad by the company was 12%. Calculate
(i) the number of shares purchased.
(ii) the annual dividend received.
English for
Semester By
1/2022 TK
Learning
Outcomes/Objective: (Year/level Shares and
Indicators)
Understand commercial
mathematics (Goods and Dividends
Services Tax (GST) Compound
Interest, Banking: Recurring, Shares
and Dividend) which can be
applied.

Secondary 4 (M.4)
What is a Share? Important terminologies
Shares, Stocks and
 Nominal value (N.V.)
equities are terms
used to describe  Face value (F.V.)
units of ownership
 Register value
in one or more
companies.  Market value (M.V.)
The owner, known
 Purchase price
as a shareholder,
will also have the  Sum invested
right to part of the
 Premium
company’s
earnings if a  Discount
dividend payment
 Par
is made, as well as
voting rights.  Fair value
English for
Mathematics(MLP+ICSE)
Value of shares The original value is called its
face value or nominal value (in

short, NV), register value, printed
value and par value
The price at which the share is sold or purchased in the
capital market through stock exchanges is called
its market value (in short, MV).

English for
Mathematics(MLP+ICSE)
Value of shares
A share is said to be: At premium or Above par,
if its market value is more than its face value.
At par,
if its market value equals its face value.
At discount or Below par,

if its market value is less than its face value.

Example 1: How much money will be required to buy 400, Rs. 12.50 shares
at a premium of Rs. 1?
Solution

Example 2: How much money will be required to buy 250, Rs.15 shares at
a discount of Rs.1.50?
Solution

Example 3: What is the cost of 85 shares of Rs.60 when quoted at Rs.63.25?
Solution

The number of shares (bought)
How to find
the number of
shares Sum invested
bought?
No. of shares bought = MV of 1 share

Example 4: A man invests Rs 7,770 in a company when a share of nominal value
of Rs 100 sells at a premium of Rs 5. Find the number of shares
bought.
Solution

Example 5: Rohit invested Rs. 9,600 on Rs. 100 shares at Rs. 20 premium. Find
the the number of shares he bought.
Solution

How to find The The Sale proceed
Sale proceed
of shares
bought?
The Sale proceed

= number of shares x MV of 1 share

Example 6: Mr. Sharma has 60 shares of nominal value Rs100 and sells them when they
are at a premium of 60%. He invests the proceeds in shares of nominal value
Rs50, quoted at 4% discount, Calculate the sale proceeds.
Solution

Example 7: Rohit invested Rs. 9,600 on Rs. 100 shares at Rs. 20 premium paying
8% dividend. Rohit sold the shares when the price rose to Rs. 160. He
invested the proceeds (excluding dividend) in 10% Rs. 50 shares
at Rs. 40. Find the :
(i) Original number of shares.
(ii) Sale proceeds.
(iii) New number of shares.
Solution

(ii) Sale proceeds.
Solution

(ii) Sale proceeds.
Solution

4. [2019] A man invests RS.4500 in shares of a company which is paying 7.5% dividend. If
100 shares are available at a discount of 10%. Find
(i) Number of shares he purchases.
(ii) His annual income.
English for
5.[2019] Sachin invests Rs.8500 in 10%, Rs.100 shares at Rs.170. He sell the shares when the
price of ach share rise by Rs.30. He invests the proceeds in 12%, Rs.100 shares at
Rs.125. Find
(i) the sale proceeds .
(ii) the number of Rs.125 shares he buys.
(iii) In change in his annual income.
English for
6. [2015] Victoria invested $9,600 on $100, shares at 20% premium paying 8% dividend.
Victoria sold the shares when the price rose to $160. He invested the proceeds
(excluding dividend) in 10% premium $50 shares at $40. Find the:
(ii) Sale proceeds.
(iii) New number of shares
(iv) Change in the two dividends.

English for
What is different
among Dividend, Various key words
Income, Profits and Profits  Return rate
Return? Sale Proceeds
 percentage income
Profits percent
 Income
 Investments
 Rate of return

Investments How to find,

Profits and
Profits percent?
Profits
Profits percent

What is different Income
among between
Income Percent and
Rate of Return?
Income Percent
Return
Rate of Return
=

Attention
𝑇𝑜𝑡𝑎𝑙 𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑
1. no. of shares bought =
𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑 𝑜𝑓 𝑜𝑛𝑒 𝑠ℎ𝑎𝑟𝑒
2. Income (return or profit) = (No. of shares)x(rate of dividend)x(NV)
= (No. of shares)x(Dividend on 1 share)
𝑇𝑜𝑡𝑎𝑙 𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑
3. Return % = Income (profit) % = x 100%
𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑 𝑜𝑓 𝑜𝑛𝑒 𝑠ℎ𝑎𝑟𝑒
NOTE: The face value of a share remains the same. The

market value of a share changes from time to time.

Example 1: A man buys Rs 75 shares at a discount of Rs 15 of a company paying
20% dividend. Find:
(i) the market value of 120 shares;
(ii) his annual income;
Solution
(iii) his profit percent.

Example 2: A person buys 120 shares at a nominal value of Rs 40 each, which he
sells at Rs 42.50 each. Find his profit and profit percent.
Solution

Example 3: A man invests Rs 7,770 in a company paying 5% dividend when a
(i) annual income
(ii) percentage income.
Solution

Example 4: Hundred rupee shares of a company are available in the market at a
premium of Rs20. Find the rate of dividend given by the company,
when a man's return on his investment is 15%.
Solution

Example 5: Michael buys shares of face value Rs.50 of a company which pays 10
% dividend. At what price did he buy each share from the market if
his profit is 16 % on his investment?
Solution

Exercise English for Mathematics(MLP+ICSE)
Answer the following questions in extra paper.

1. A man buys Rs 50 shares of a company, paying 12% dividend, at a premium of
Rs 10. Find his profit percent.
2. A man has 300, Rs 50 shares of a company paying 20% dividend(income).

Find his net income after paying 3% income tax.
3. Mr. Pradesh invested $52,000 on $100 shares at a discount of 20% paying 8%

dividend. At the end of 1 year he sell the shares at the premium of $20. Find
the profit earned including his dividend.
4.[2014] Melanie invests a sum of money in $50 shares, paying 15% dividend quoted at 20%
premium. If his annual dividend is $100, calculate:
(i) the number of shares he bought.
(ii) his total investment
(iii) the rate of return on his investment.
English for
5. [2018] A man invests Rs.22,500 in buying Rs.50 shares available at 9% discount . I the
dividend pad by the company was 12%. Calculate
(i) the number of shares purchased.
(ii) the annual dividend received.
(iii) the rate of return he gets on his investment. Give your answer correct to the
nearest whole number.
English for

Shares and Dividends 2022

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Shares and Dividends 2022

Uploaded by

Copyright:

Available Formats

Assumption college Samutprakarn By

ACSP Online Education

English for Mathematics(MLP +ICSE )

Semester  Commercial Mathematics

1/2022  Compound interest

English for Mathematics(MLP +ICSE )

Learning  Shares and

English for Mathematics(MLP +ICSE )

English for Mathematics(MLP+ICSE)

English for Mathematics(MLP+ICSE)

English for Mathematics(MLP+ICSE)

English for Mathematics(MLP+ICSE)

English for Mathematics(MLP+ICSE)

English for Mathematics(MLP+ICSE)

English for Mathematics(MLP+ICSE)

English for Mathematics(MLP+ICSE)

English for Mathematics(MLP +ICSE )

face value or nominal value (in

its market value (in short, MV).

At discount or Below par,

English for Mathematics(MLP+ICSE)

English for Mathematics(MLP+ICSE)

English for Mathematics(MLP+ICSE)

English for Mathematics(MLP+ICSE)

The number of shares (bought)

English for Mathematics(MLP+ICSE)

English for Mathematics(MLP+ICSE)

English for Mathematics(MLP+ICSE)

The Sale proceed

English for Mathematics(MLP+ICSE)

English for Mathematics(MLP+ICSE)

English for Mathematics(MLP+ICSE)

English for Mathematics(MLP+ICSE)

English for Mathematics(MLP+ICSE)

(iv) Change in the two dividends.

English for Mathematics(MLP+ICSE)

Investments How to find,

English for Mathematics(MLP+ICSE)

English for Mathematics(MLP+ICSE)

NOTE: The face value of a share remains the same. The

English for Mathematics(MLP+ICSE)

English for Mathematics(MLP+ICSE)

English for Mathematics(MLP+ICSE)

English for Mathematics(MLP+ICSE)

English for Mathematics(MLP+ICSE)

English for Mathematics(MLP+ICSE)

Answer the following questions in extra paper.

2. A man has 300, Rs 50 shares of a company paying 20% dividend(income).

3. Mr. Pradesh invested $52,000 on $100 shares at a discount of 20% paying 8%

You might also like