Question

If a company declares a dividend of \( 12\% \) on shares of Face Value \( ₹10 \), what is the Dividend per Share?

Options

• \[ ₹ 120 \]

• \[ ₹ 0.12 \]

• \[ ₹ 1.20 \]

• \[ ₹ 12.00 \]

Answer 1

Dividend per Share = (Dividend % / 100) × Face Value = \[ \frac{12}{100} \times 10 = ₹ 1.20 \]. The dividend is always calculated on the Face Value, not on the Market Value.