Question

Annual Income = ______.

Options

• Number of shares × Face Value

• Number of shares × rate of dividend × Face value of 1 share

• Number of shares × Market value × Face value

• MV × NV × 100

Answer 1

Annual Income = Number of shares × rate of dividend × Face value of 1 share.

Explanation:

Dividend is paid as a percentage of a share’s face (nominal) value, so annual income = number of shares × (rate of dividend/100) × face value per share (i.e. n × r% × FV).