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प्रश्न
Explain the following term/concept.
Rate of Dividend.
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उत्तर
A dividend is that part of the profits of a company which is distributed amongst its shareholders. Equity shareholders are given dividends at a fluctuating rate depending upon the profits of the company, whereas preference shareholders receive dividends at a fixed rate. Also, the rate of interim dividend is usually lower than the final dividend.
The Rate of Dividend refers to the percentage of dividend declared by a company on the face value of its shares.
Rate of Dividend = `"Dividend per Share"/"Face value of share" xx 100`
Example: If the face value of a share is ₹100 and the dividend declared is ₹20 per share, then the rate of dividend will be 20%.
APPEARS IN
संबंधित प्रश्न
Select the correct answer from the options given below and rewrite the statement.
_________ is profit shared by company with a shareholder.
Dividend is recommended by ______________.
Select the correct answer from the options given below and rewrite the statement.
Dividend amount should be transferred in a separate Bank Account within ____________ days of its declaration
Select the correct answer from the options given below and rewrite the statement.
__________ holders get dividend from residual profits.
Select the correct answer from the options given below and rewrite the statement.
_________ warrant is a cheque containing dividend amount sent by company to the shareholders.
Select the correct answer from the options given below and rewrite the statement.
___________ is not linked to profits of the company
Write a word or a term or a phrase which can substitute the following statement.
The return on investment paid to the shareholders of the company.
Write a word or a term or a phrase which can substitute the following statement.
The meeting where the final dividend is declared.
State whether the following statement is true or false.
Dividend is decided by the shareholders.
Complete the sentence.
Word dividend is derived from Latin term ______.
Answer in one sentence.
What is Dividend?
Answer in one sentence.
What is final Dividend?
Select the correct option from the bracket.
| Group ‘A’ | Group ‘B’ |
| a) Dividendum | 1) ____________ |
| b) Interest | 2) ____________ |
| c) ____________ | 3) Final Dividend |
| d) ____________ | 4) Interim Dividend |
| e) Govt. Fund | 5) ____________ |
(Creditors, IEPF, Latin term, At Board Meeting, At AGM)
Correct the underlined word and rewrite the following sentence.
Special Resolution must be passed to declare Final Dividend
Explain the following term/concept.
Dividend
Study the following case/situation and express your opinion :
LMN Co Limited decides to declare a dividend for the financial year 2018-19 in which it has earned profits less than their expectations.
- Is Board right in recommending a dividend of Rs. 5/- per share out of free reserves?
- Can Board declare the dividend though it is not approved by AGM?
- Can the Board give dividends in the form of gifts?
Answer in brief.
State any four points to be kept in mind by a Listed Company with respect to Dividend.
