Question

Dividend = ______.

Options

• Number of shares × N.V

• Number of shares × M.V

• Face Value × No. of shares × `"Rate of dividend"/100`

• None of these

Answer 1

Dividend = `underlinebb(Face Value × "No. of shares" × "Rate of dividend"/100)`.

Explanation:

Dividend (total) = Number of shares × Face (nominal) value per share × `"Rate of dividend"/100`, dividend is paid on the face (par) value, not on the market value or just number of shares alone.

Example: 100 shares of face value ₹ 10 with a 8% dividend

⇒ `100 × 10 xx 8/100` = ₹ 80 total dividend.