Problems on Income and Return from Shares with stepwise solutions are presented on this page. Therefore the students of grade 10 who wish to learn about the Income and Return from shares from the chapter shares and dividends can refer to this article to start their preparation for the exams. This article not only helps you to practice for the exams but also helps you to complete your assignments in time. Click on the below attached links to enhance your math skills.
Also Read:
- Worksheet on Income and Return from Shares
- Calculation of Income, Return and Number of Shares
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