Question

how to solve questions of share and dividend

Answer 1

Let me give you the formulas.

Let NS be the Number of Shares,
MVS be the total Market Value Investment,
NV be the Nominal Value of one share,
MV be the Market Value of one share,
D% be the Dividend Percent,
R% be the Return Percent (on his investment),
Inc be the annual income/annual dividend that he receives.

Formulas:

$NS = \frac{MVS}{MV}$

Inc = D% of NS x NV

R% of MV = D% of NV

$R = \frac{Inc}{MVS} \times 100\%$





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If percentage premium is given, (suppose premium = 10%),
find the amount of premium by just multiplying it with the Nominal Value (NV).
If the NV is Rs.100,
Premium = 10% of Rs. 100 = Rs.10
From here, find the MV, by adding the premium amount to the NV.
Hence. MV in this case = Rs. 100 + Rs. 10 = Rs. 110.



If percentage discount is given, (suppose discount = 10%),
find the amount of discount by multiplying it with the NV.
If the NV is 100,
Discount = 10% of Rs. 100 = Rs. 10.
From here, you can find the MV by just subtracting the discount from NV.
Hence, MV in this case = Rs. 100 - Rs.10 = Rs. 90


HOPE MY ANSWER IS SATISFACTORY....
THANKS..!!