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March 15[edit]

economics; calculation of shares and interest rate [country; nigeria, africa[edit]

1. 50kobo share are quoted at 35naira. how many shares can be buy with 70,000naira.

2. a share of nominal value of 50kobo stand at 6naira and declare a divident at 15percent. how much is need for a divident of 450.00naira.

3. a share of 50kobo are quoted at 80kobo. if a man invest 4000.00naira, how much shall he gain if he sell the share for 90kobo---- — Preceding unsigned comment added by 196.46.246.49 (talk) 07:40, 15 March 2013 (UTC)[reply]

We don't do your homework for you, but the first question is a simple division. Tell us what you get, and we'll check it for you. (In case any other readers wish to know, 50kobo is half of one Nigerian naira.) Our article on Dividend doesn't make this very clear, but a dividend of 15% means 15% of the 50kobo issue value, not 15% of the current price of 6 Naira, so it is quite a low dividend. Are you asked to find how 'many shares for Q2, or how much money needs to be invested? For your third question, just calculate how many shares he can buy, then how much he sells them for, and the difference is the gain. If you make a start, we'll tell you what to do next. Dbfirs 08:56, 15 March 2013 (UTC)[reply]

1.50kb share =#35.00 = x=#70,000 cross multiply =#35*x =50kb(#0.50) x #70,000

 #35x = #35,000
 divide both side by #35
 x=#335,000/#35
 x=1,000kbAliyuagyo (talk) 15:53, 15 March 2013 (UTC)aliyuagyo[reply]

2. nominal share value 50kb(#0.50), stand at #6.00, dividend stand at 15%

  =15% of 50kb
  =15/100 x  #0.50
  =7/100
  =0.07
  =0.07 x #6.00
  =0.42
 dividend of #450.00 is
  =0.42 x #450.00
  =189

3. quoted share 80kb(#0.80) or 80kb - 90kb = 10kb

  money invest #4,000.00                    10kb(#0.10) x #4,000 = #400
  current share sell 90kb(#0.90)
  #o.80 x #4,000 =#3,200                     gain is #400.Aliyuagyo (talk) 07:52, 16 March 2013 (UTC)
  #0.90 x #4,000 =#3,600
  therefore, #3600 - #3200 =#400.00          edit to prof the working
   gain is #400[reply]

Unfortunately, you have made a mistake in each part. (In parts 2 and 3 you need to divide, not multiply.)

In Q1, the 50 kobo issue price doesn't come into the calculation. You are asked "how many shares", so your answer should be just a number. How many items costing #35 each can you buy for #70,000? You get the answer by a simple division.

In question 2, you were correct in working out the dividend on each share as #0.075 (but don't round it to #0.07). If you expect to receive a dividend income of #450.00 then you will need to buy a lot of shares. Do a division to work out how many #0.075 dividends you need to earn #450.00. Multiply your answer by the current price of #6.00 to calculate how much money you need to invest.

In Q3, there are two ways to get the answer, but the way I suggested is to work out how many shares costing #0.80 the man can buy for #4000.00 (just a division again.) When you get the answer for the number of shares, multiply by the selling price (#0.90) to find how much he sells them for.

Is there any reason to set up algebraic equations with "x" to get the answer. If you are expected to do this, then you should state what "x" is at the start of each part. Dbfirs 08:38, 16 March 2013 (UTC)[reply]

Q1. 50kb share quoted at #35.00, for #70,000.00

    =#70,000.00/#35.00
    =2,000 shares

Q2. 15% x50kb

    =15/100 x #0.50
    =7/100
    =0.075
therefore; 450/0.075
    =6000 x #6.00
    =#36,000.00

Q3. 4,000/#0.80

     =#5,000
     =5,000 x #0.90
     =4,500.00
 His gain is 4,500 - 4,000 = 500196.46.245.53 (talk) 17:35, 17 March 2013 (UTC)[reply]

Well done! You've got it now. Just one small point about units in Q3: when you divide #4000 by #0.80 the currency units cancel to give 5,000 (shares). When you sell these shares, you get 4,500 Naira, so the gain is 500 Naira. The question ignores dealing costs. Dbfirs 20:32, 17 March 2013 (UTC)[reply]