Share Market — O/L Mathematics

How do I practise Share Market?

1 question with a worked solution

1. An investor purchases 2,000 shares of a company with a market price of Rs. 30 per share. If the company declares an annual dividend of Rs. 4.50 per share, calculate the annual dividend income and the dividend yield on investment.
   1. A) Rs. 9,000 and 12%
   2. B) Rs. 6,000 and 10%
   3. C) Rs. 4,500 and 15%
   4. D) Rs. 9,000 and 15%
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   Correct answer: D) Rs. 9,000 and 15%

   Annual dividend = 2,000 shares × Rs. 4.50 = Rs. 9,000. Total investment = 2,000 × 30 = Rs. 60,000. Dividend yield = (4.50 / 30) × 100% = 15% (or 9,000 / 60,000 × 100% = 15%).

   Show worked solution

   Step 1: Calculate annual dividend: 2,000 × Rs. 4.50 = Rs. 9,000. Step 2: Calculate total investment: 2,000 × Rs. 30 = Rs. 60,000. Step 3: Dividend yield = (Annual dividend / Total investment) × 100% = (9,000 / 60,000) × 100% = 15%. Answer: Rs. 9,000 and 15%.
   Modelled on: the O/L Mathematics examination pattern

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Where does Share Market fit in the syllabus?

Grade 11 · Term 2