Question

(1) In 2019, the energy company divided its profits in the ratio;

shareholders : bonuses : development = 5 : 2 : 6

In 2019, its profits were $390 million.

Calculate the amount the company gave to shareholders.

(2) The share price of the company in June 2019 was $285.25. This was an increase of 3.3% on the share price in May 2019.

Calculate the share price in May 2019.

Answer 1

19

Explanation:

Answer 2

9514 1404 393

Answer:

(1) $150 million

(2) $276.14

Explanation:

(1) The ratio 5 : 2 : 6 to shareholders : bonuses : development tells us that the fraction of profits to shareholders is ...

5/(5+2+6) = 5/13

The dollar amount to shareholders is then ...

(5/13)($390 million) = $150 million

__

(2) We have ...

$285.25 = (1 +3.3%) × (May price)

May price = $285.25/1.033 = $276.14