of his income. Face value = ` Market value = ` ( – + ) = ` ` percentage of his income = ( × = = ` % of income = % Example . Equal amounts are invested in % stock at and % stock at ( % brokerage paid in both transactions). If % stock bought ` more by way of dividend income than the other, find the amount invested in each stock.
Let x be the amount invested in each stock Income on % stock at : F.V. = ` , M.V. = ` Number of shares = . .
M V investments = x Annual income = x = x ... ( ) Income on % stock at : M.V. = ` Number of shares = MV investments = x Annual income = x = x ... ( ) Given : x = ⇒ x = ` ` The amount invested in each stock ≈ ` , .
Example . A capital of a company is made up of , , preference shares with a dividend rate of % and , ordinary shares.The par value of each of preference and ordinary shares is ` .The total profit of a company is ` , , .If ` , were kept in reserve and ` , were kept in depreciation fund, what percent of dividend is paid to the ordinary share holders. F.V. = ` Total face value of preference shares = ` , , × = ` , , Total face value of ordinary shares = ` , × = ` , , Total dividend amount paid to shareholders = ` ( , , – , – , ) = ` , , Dividend for preference shares = × , , = ` , , Dividend to ordinary shares = , , – , , = ` , , Dividend rate for ordinary share = Investment Income × % Dividend % = ,