Worksheet on Share and Dividend

Practice the questions given in the worksheet on share and dividend.

1. Michael has a choice to invest in 10-dollar shares of two firms at $ 13 or at $ 16. If the first firm pays 5% dividend and the second firm pays 6% dividend per annum, find:

(i) which firm is paying better.

(ii) if Michael invests equally in both the firms and the difference between the return from them is $ 30. Find how much, in all, does he invest.

2. A dividend of 9% was declared on $ 100 shares selling at a certain price in the stock market. If the rate of return is 7.5%, calculate

(i) the market price of each share, and

(ii) the amount to be invested to obtain an annual dividend of $ 630.

3. William has the option of investing his money in 8% $ 10 shares at a premium of $ 3.50 or 7% $ 100 shares at a premium of 20%. Which of the two investments will be more profitable for him?

4. Daniel invests $ 1344 in buying shares of face value $ 24 selling at 12% premium. The dividend on the shares is 15% per annum. Calculate

(i) the number of shares Daniel buys, and

(ii) the dividend he receives annually.

5. Matthew invests $ 5625 in a company paying 7% per annum when share of $ 10 stands for $ 12.50. Find peter’s income from this investment.

If he sells 60 % of these shares for $ 10 each, find his gain or loss in this transaction.

6. George buys $ 100 shares of a company which pays 15 % dividend. He buys the shares at a price from the market that gives him 10% return on his investment. At what price did he buy each share?

7. Ryan invests in 9% $ 100 shares at $ 145 but Brandon invests in 7% $ 100 shares at $ 116. Whose investment is better?

Answers for the worksheet on share and dividend are given below:

Answers:

1. (i) First firm

(ii) $ 62,400

2. (i) $ 120

(ii) $ 8400

3. First kind

4. (i) 50

(ii) $ 180

5. $ 315; $ 675 less

6. $ 150