Shares and Dividends — ICSE Class 10 Maths Important Questions
14 ICSE Class 10 Maths practice questions on Shares and Dividends, each with a full model answer, covering 5 topics from the chapter in the question formats used in the exam.
By The Classmate AI Editorial Team
Reviewed by Classmate AI Team · 29 September 2026
- 14
- Questions
- 5
- Topics
- 3
- Key concepts
- ₹0
- With answers
Shares and Dividends — ICSE Class 10 Maths Important Questions
Dividends and Share Value, Sorted
Your Personal AI Tutor
Teaches Class 8–10 CBSE/ICSE Maths & Science by asking the right questions — not handing over answers.
Start your Freemium planOften-asked ICSE Shares and Dividends questions test the difference between nominal (face) value and market value, computing dividend as rate×NV×number of shares, finding the number of shares as investment/market value, and the percentage return income/investment×100. Comparison-of-investment and change-of-investment problems appear almost every year.
About Shares and Dividends
In this ICSE Class 10 Maths chapter Shares and Dividends you buy shares at their market value while dividends are always paid on the nominal (face) value. You compute annual income (dividend), the number of shares bought, the money invested, and the percentage return on the investment, and you compare or switch between different investments.
Key concepts & formulas
Dividend is always a percentage of the nominal (face) value. A share bought above face value is at a premium, below face value is at a discount. Investment = number of shares × market value.
Dividend=rate×nominal value×number of shares. Number of shares =investment/market value=total nominal value/nominal value per share.
Return \%=annual income/investment×100. Buying at a premium lowers the yield below the dividend rate; buying at a discount raises it above.
Get all 14 Shares and Dividends questions as a PDF
The full question bank with model answers — perfect for offline revision and last-minute practice.
Important questions with answers
Try each on paper first, then reveal the model answer to check your method.
Multiple-choice questions (1 mark)
The dividend on a share is always calculated on its:
- (a)
Nominal (face) value
- (b)
Market value
- (c)
Investment
- (d)
Premium
Show model answer
Answer: (a) Nominal (face) value.
A company declares a dividend as a percentage of the face value of a share, regardless of the price at which it is traded.
A ₹100 share pays a dividend of 8\%. The dividend per share is:
- (a)
₹8
- (b)
₹80
- (c)
₹0.08
- (d)
₹108
Show model answer
Answer: (a) ₹8.
Dividend =8\% of 100=₹8 per share.
A man invests ₹4000 in ₹50 shares that are quoted at a market value of ₹80. The number of shares he buys is:
- (a)
50
- (b)
80
- (c)
40
- (d)
100
Show model answer
Answer: (a) 50.
Number of shares =investment/market value=4000/80=50.
A ₹100 share is bought at ₹125 and pays a dividend of 10\%. The percentage return on the investment is:
- (a)
8\%
- (b)
10\%
- (c)
12.5\%
- (d)
12\%
Show model answer
Answer: (a) 8\%.
Dividend per share =10\% of 100=₹10; return =10/125×100=8\%.
Want every Shares and Dividends question solved live, at your pace?
Practise free with the AI tutor →Assertion–Reason questions (1 mark)
Assertion (A): Buying a share at a premium gives a percentage return lower than the declared dividend rate.
Reason (R): The percentage return is the dividend expressed as a percentage of the market value, which exceeds the nominal value when the share is at a premium.
- (a)
Both A and R are true and R is the correct explanation of A
- (b)
Both A and R are true but R is not the correct explanation of A
- (c)
A is true but R is false
- (d)
A is false but R is true
Show model answer
Answer: (a) Both are true and R explains A: dividend is fixed on the nominal value, but return divides it by the larger market value, so at a premium the return falls below the dividend rate.
Very short answer questions (2 marks)
A man buys ₹75 shares at ₹90 each and gets a 10\% return on his investment. Find the rate of dividend declared by the company.
Show model answer
Return on one share =10\% of ₹90=₹9. This ₹9 is the dividend on a share of nominal value ₹75.
Rate of dividend =9/75×100=12\%.
A ₹100 share pays a dividend of 12\% and gives a return of 8\% to the buyer. Find the market value of the share.
Show model answer
Dividend per share =12\% of 100=₹12.
Return \%=dividend/market value×100 8=12/MV×100.
MV=12×100/8=₹150.
Short answer questions (3 marks)
A man buys 300 shares of nominal value ₹100 each at a premium of ₹20. The company pays a dividend of 12\%. Find (i) his investment, (ii) his annual dividend, and (iii) his percentage return.
Show model answer
Market value =100+20=₹120.
(i) Investment =300×120=₹36000.
(ii) Dividend =12\% of (100×300)=12\% of 30000=₹3600.
(iii) Return =3600/36000×100=10\%.
A man invests ₹9000 in ₹50 shares available at a discount of ₹5. The company pays a dividend of 8\%. Find the number of shares he buys and his annual income.
Show model answer
Market value =50-5=₹45.
Number of shares =9000/45=200.
Annual income =8\% of (50×200)=8\% of 10000=₹800.
A man wants an annual income of ₹1800 from 9\% shares of nominal value ₹100 each. If the shares are available at a discount of ₹10, find the number of shares he must buy and the sum he must invest.
Show model answer
Dividend per share =9\% of 100=₹9.
Number of shares needed =1800/9=200.
Market value =100-10=₹90.
Investment =200×90=₹18000.
Which is the better investment: 16\% ₹100 shares at ₹80, or 20\% ₹10 shares at ₹12? Give reasons.
Show model answer
First investment: dividend per share =16\% of ₹100=₹16; return =16/80×100=20\%.
Second investment: dividend per share =20\% of ₹10=₹2; return =2/12×100=1623\%.
Since 20\%>1623\%, the first investment (16\% ₹100 shares at ₹80) is better: it gives a higher percentage return on the money invested.
Long answer questions (5 marks)
Mr. Roy buys 200 shares of face value ₹100 each at ₹160 in a company paying a 20\% dividend. He later sells all the shares at ₹180 each and invests the whole proceeds in ₹50 shares quoted at ₹40 paying an 8\% dividend. Find:
(i) his original annual dividend,
(ii) the sale proceeds,
(iii) the number of new shares he buys,
(iv) his new annual dividend, and
(v) the change in his annual income.
Show model answer
(i) Original dividend =20\% of (100×200)=20\% of 20000=₹4000.
(ii) Sale proceeds =200×180=₹36000.
(iii) New shares =36000/40=900.
(iv) New dividend =8\% of (50×900)=8\% of 45000=₹3600.
(v) Change =4000-3600=₹400 decrease in annual income.
A company has 10000 shares of nominal value ₹100 each and declares an annual dividend of 15\%. Mr. Verma owns 250 of these shares, bought at ₹140 each. Find:
(i) the total dividend paid by the company,
(ii) Mr. Verma's annual dividend,
(iii) his total investment, and
(iv) his percentage return, correct to two decimal places.
Show model answer
(i) Total dividend =15\% of (100×10000)=15\% of 1000000=₹150000.
(ii) Verma's dividend =15\% of (100×250)=15\% of 25000=₹3750.
(iii) Investment =250×140=₹35000.
(iv) Return =3750/35000×100=10.71410.71\%.
Case-based questions (4 marks)
A man invests ₹60000 in shares of nominal value ₹100 each, buying them at a market value of ₹120. The company pays an annual dividend of 15\%.
(i) Find the number of shares he buys.
(ii) Find his annual dividend.
(iii) Find his percentage return.
(iv) If the market value later rises to ₹150 and he sells all the shares, find his profit.
Show model answer
(i) Number of shares =60000/120=500.
(ii) Dividend =15\% of (100×500)=15\% of 50000=₹7500.
(iii) Return =7500/60000×100=12.5\%.
(iv) Sale proceeds =500×150=₹75000; profit =75000-60000=₹15000.
All ICSE Class 10 Maths Chapters
Frequently asked questions
Do these Shares and Dividends questions follow the latest ICSE syllabus?
Yes — they are aligned to the CISCE 2026–27 syllabus for ICSE Class 10 Maths, so nothing here is outside the current course.
Stuck on Shares and Dividends? Let the AI tutor help
Free to start · Step-by-step Socratic help · ICSE Class 10 Maths
Practise Shares and Dividends free →