dividend of %. Find (i) the number of cotton textiles shares purchased and (ii) change in his dividend income. . The capital of a company is made up of , preferences shares with a dividend of % and , ordinary shares.
The par value of each of preference and ordinary shares is ` . The company had a total profit of ` , , . If ` , were kept in reserve and ` , in depreciation, what percent of dividend is paid to the ordinary share holders - - Financial Mathematics Endowment or Scholarship fund (i) If the scholarship is awarded endlessly, then P (ii) If the scholarship is awarded for a fixed period, say, n years, then P Face Value: The original Value of the share is called its nominal values or face value or printed value. Market Value: The price at which the share is sold (or) purchased in the capital market through stock exchanges is called the market value.
A Share is called at par if the market value of the share is equal to its face (or) nominal value. A share is said to be above par (or) at premium, if the market value of the share is more than its nominal value. A share is said to be below par (or) at discount, if the market value of the share is less than its nominal value. The part of the annual profit, which a share holder gets for his investment from the company is called dividend.
Dividend is always declared on the face value of the share and the rate of dividend is expressed as a percentage of the nominal value of a share per annum. Annual income of a shareholders = × × . n r F V Where n = number of shares with the shareholders r = rate of dividend, Annual Return = investment in shares Annual income × % Number of Shares held = . .
M V r F V f ne share as the type f investment investment q q q