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Question
Explain the following term/concept.
Rate of Dividend.
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Solution
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%.
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RELATED QUESTIONS
Select the correct answer from the options given below and rewrite the statement.
Dividend is paid to ___________.
Select the correct answer from the options given below and rewrite the statement.
_________ is profit shared by company with a shareholder.
Dividend cannot be declared out of ______________.
Select the correct answer from the options given below and rewrite the statement.
Dividend should be paid within ________________ days of its declaration
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.
Match the pairs.
| Group ‘A’ | Group ‘B’ |
| a) Dividend | 1) Must inform stock exchange about Dividend declaration |
| b) Interest | 2) Creditors |
| c) IEPF | 3) Registered Shareholders. |
| d) Unpaid Dividend Account | 4) Balance of unpaid Dividend Transferred here. |
| e) Listed Company | 5) Unregistered company. |
| 6) Non-listed company. | |
| 7) Unpaid/Unclaimed Dividend. | |
| 8) Balance of unpaid Bonus transferred here. | |
| 9) Must inform Government about Dividend declaration. | |
| 10) General Public. |
Write a word or a term or a phrase which can substitute the following statement.
The meeting where the final dividend is declared.
Write a word or a term or a phrase which can substitute the following statement.
The shareholders who get dividend at a fixed rate.
State whether the following statement is true or false.
Dividend is decided by the shareholders.
Complete the sentence.
Dividend is paid to __________.
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)
Select the correct option from the bracket.
| Group ‘A’ | Group ‘B’ |
| a) Preference Shares | 1) ____________ |
| b) Equity Shares | 2) ____________ |
| c) Deposit holders | 3) ____________ |
| d) ____________ | 4) Payment of Dividend |
| e) ____________ | 5) Dividend Declared but not paid/claimed |
(Unclaimed/Unpaid Dividend, Fixed rate Dividend, Dividend at a Fluctuating Rate, Interest, Within 30 days)
Select the suitable option for the following.
Dividendum ____________.
Correct the underlined word and rewrite the following sentence.
Special Resolution must be passed to declare Final Dividend
Explain the following term/concept.
Dividend
Discuss any four features of dividend.
