Shares And Dividends
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There are \(100000\) shares available in the Axis investment company and Harry owns \(2\%\) of them.
i) How many shares does Harry own?
ii) If the company declares annual earnings of \(\$500000\), how much will Harry get?
iii) How many more shares would Harry have to buy to get an annual earnings share of \(\$12000\)?
\begin{align}
\text{i) Number of shares}&=100000 \times 2\%\\
&=2000
\end{align}
\begin{align}
\text{ii) Harry's earnings}&=500000\times 2\%\\
&=\$10000
\end{align}
\begin{align}
\text{iii) } \$10000&=2000 \text{ shares}\\
\therefore \$1&=\frac{2000}{10000}\\
&=0.2 \text{ shares}\\
\$12000&=12000 \times 0.2\\
&=2400 \text{ shares}\\
\therefore \text{ Harry would} & \text{ need 400 more shares}
\end{align}
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