Calculating Dividend and Brokerage Fees

The video tutorial covers the calculation of total costs and amounts obtained from shares, including brokerage fees. It explains how often shares are paid out, typically annually or quarterly, depending on the company. The tutorial also details how to calculate dividend yield and demonstrates reverse calculations to find dividends from given yields and market prices.

What is the first step in calculating the total cost of shares?

• Find the market price per share

• Calculate the brokerage fee

• Add the dividend yield

• Determine the number of shares

How is the brokerage fee calculated when buying shares?

• As a percentage of the total transaction

• As a percentage of the dividend

• As a fixed amount

• As a percentage of the profit

When selling shares, what must be subtracted from the total amount obtained?

• The brokerage fee

• The dividend

• The face value

• The market price

What is the market price per share in the example of selling shares?

• $2.46

• $4.65

• $2.50

• $3.10

How is the dividend yield calculated?

• Dividend divided by market price

• Face value divided by market price

• Dividend divided by face value

• Market price divided by dividend

What is the dividend yield if the dividend is 10 cents and the market price is $3.10?

• 2.5%

• 10%

• 3.10%

• 3.22%

If the market price is $3.10 and the yield is 5%, what is the dividend?

• 10 cents

• 5 cents

• 15 cents

• 16 cents

What is the formula used to find the dividend when the yield and market price are known?

• Yield divided by market price

• Yield multiplied by market price

• Market price divided by yield

• Dividend divided by yield

In the table example, which three pieces of information are used to fill in the gaps?

• Market price, face value, yield

• Face value, yield, dividend

• Market price, dividend, yield

• Face value, market price, dividend

What is the purpose of the table in the final section?

• To calculate the total cost of shares

• To find the market price

• To determine the brokerage fee

• To fill in missing values related to shares