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Sale Proceeds and Dividend Formulas

The document provides formulas related to shares and dividends for Class X students. It includes calculations for the number of shares, dividends, yields, and sale proceeds, along with notes on how to interpret terms like premium and discount. Additionally, it outlines steps for determining changes in dividends and identifying future and market values based on specific keywords.

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Maninder sng Kshatriya
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59 views1 page

Sale Proceeds and Dividend Formulas

The document provides formulas related to shares and dividends for Class X students. It includes calculations for the number of shares, dividends, yields, and sale proceeds, along with notes on how to interpret terms like premium and discount. Additionally, it outlines steps for determining changes in dividends and identifying future and market values based on specific keywords.

Uploaded by

Maninder sng Kshatriya
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

SHARES AND DIVIDENDS (FORMULAS)

CLASS X WINTER COACHING


SIR DEVEN’S FORMULA SHEET
ST. ANTHONY’S SCHOOL GIRLS

1) No. of shares = Investment


M.V of 1 share

2) Dividend (Annual Income) = R%× F.V × No. of shares


100

3) Dividend on 1 share = R% × F.V


100

4) % return or yield or = Dividend on 1 share ×100% OR Dividend× 100%


Rate of intereston investment M.V of 1 share Investment

5) Sale proceeds = No. of shares sold × price at which each share is sold

Premium ( means have to find M.V)

Premium in RsPremium in %

M.V = F.V + premium in Rs M.V = F.V + premium%× F.V


100
Note:
i) Whenever the question says invested the proceeds we always have to find the
following:

a) Sale proceeds b) New Investment = Sale proceeds

ii) Whenever Discount % is given in the question follow the given steps:

a) Find Discount in Rs:


Discount(Rs) = D% × F.V
100
b) Find M.V: M.V = F.V −¿ Discount (Rs)

iii) Whenever you have to find change in dividend always find the following:
a) Original Dividend
b) New Dividend
c) Change in Dividend = Greater Dividend – Smaller Dividend

iv) If the question says invested the proceeds (including dividend) then it means,

New Investment = Sale Proceeds + Dividend

v) Whenever you have the word paid in the question it means M.V

vi) Keywords to identify F.V and M.V:


a) Whenever the word “on” , “in” , “of” is there before a value it means it is F.V.
b) Whenever the word “at” is there before a value it is always M.V.

vii) If the word INVESTMENT is there after the word rate or % then it is %
RETURN.

viii) Profit = Sale Proceeds −¿ Investment

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