## Income and Return from Shares Problems with Solutions

Example 1.
Mamtha invested $66200 in$ 80 shares which are quoted at $110. Calculate the income if an 11% dividend is declared on the shares. Solution: Given that, Total sum invested =$ 66200
Market value (M.V.) of each share = $110. Therefore, number of shares bought =$66200/$110 = 601.8 According to the problem, dividend on 1 share = 11% of face value/nominal value. = 11% of$ 100
= $11 Therefore, the total income from the shares = 601.8 ×$ 11 = $6619.8 Therefore total income from the shares =$ 6619.8

Example 2.
Mr. Ravi bought 60 shares, each of nominal value $200. After one year he received$ 500 as a dividend against them. Find the rate of dividend on his shares.
Solution:
Given that
The dividend on one share = $500/60 =$ 8.33
Therefore, the dividend was $8.33 on a share of the face value or nominal value of$ 200.
Therefore, the rate of dividend = $8.33/$200 × 100 % = 4.165%
Therefore the rate of dividend on his shares = 4.165

Example 3.
Calculate the dividend due at the end of a year on 300 shares of $70 each, if the half-yearly dividend is 2% of the value share. Solution: Given that, Half-yearly dividend on 1 share = 2% of$ 70
Therefore, the yearly dividend on 1 share = 4% of $70 = 4/100 ×$ 70
= $2.8 Total dividend due at the end of the year = 300 ×$ 2.8 = $840 Example 4. A company declares a semi-annual dividend of 8%. A person has 700 shares of face value/nominal value$ 30 each. Find a person’s annual income.
Solution:
Given that,
Total nominal value of shares = $30 × 700 =$ 21000
Therefore, semi-annual dividend = 8% of $21000 = 8/100 ×$ 21000
= $1680 Therefore, his annual income =$ 1680 × 2 = $3360 Example 5. How much should a man invest in Rs 200 shares selling at Rs 55 to obtain an annual income of Rs 1700? If the dividend declared is 14%. Find the percentage return on this investment Solution: Given that Nominal value of 1 share = Rs 200 Marked value of 1 share = Rs 55 Let the number of shares purchased = n Nominal value of n shares = Rs(200n) 14% of Rs(200n) = 1700 14/100 × 200n = 1700 28n = 1700 n = 1700/28 n = 60.71% Therefore the percentage return on this investment is 60.71% Example 6. A man invests Rs 5800 on Rs 100 shares at Rs 60. If the company pays him 15%. Find the number of shares he buys and the total dividend and his percentage return on the shares. Solution: Given that, Marked value = Rs 60 Sum invested = Rs = 5800 Number of shares = sum invested/marked value = 5800/60 Nominal value or face value = 96.6 Number of shares × face value = 96.6 × 100 = 9660 Annual income = dividend × National value = 15/100 × 9660 = 1449 Percentage return = income/investment × 100% = 2160/5800 × 100% = 37.24% The percentage return on shares = 37.24% Example 7. Mahathi invested$ 52400 in $200 shares which are quoted at$ 220. Calculate the income if 17% dividend is declared on the shares.
Solution:
Given that,
Total sum invested = $52400 and market value (M.V.) of each share =$ 220.
Therefore, number of shares bought = $52400/$220 = 238.18
According to the problem, dividend on 1 share = 17% of face value/nominal value.
=17% of $200 = 17/100 × 200 =$ 34
Therefore, the total income from the shares = 238.18 × $34 =$ 8098.12

Example 8.
Mr. Rao bought 50 shares, each of nominal value $100. After one year he received$ 400 as a dividend against them. Find the rate of dividend on his shares.
Solution:
The dividend on one share = $400/50 =$ 8
Therefore, the dividend was $8 on a share of the face value or nominal value of$ 100.
Therefore, the rate of dividend = $8/100 ×$100 = 8

Example 9.
Calculate the dividend due at the end of a month on 250 shares of $50 each, if the half-monthly dividend is 4 % of the value share. Solution: Given that, Half-monthly dividend on 1 share = 4% of$ 70
Therefore, the monthly dividend on 1 share = 8% of $70 = 8/100 ×$ 70
= $5.6 Total dividend due at the end of the month = 350 ×$ 5.6= $1960 Example 10. A company declares a semi-annual dividend of 9 %. Rajesh has 600 shares of face value/nominal value of$ 20 each. Find Rajesh’s annual income.
Solution:
Total nominal value of shares = $20 × 600 =$ 12000
Therefore, semi-annual dividend = 6 % of $12000 = 9/100 ×$ 12000
= $1080 Therefore, his annual income =$ 1080 × 2 = \$ 2160