Question

On which value is the dividend on a share usually calculated?

Options

• Net Sale Proceeds

• Face Value

• Buying Price including brokerage

• Market Value

Answer 1

Dividend is usually calculated on face value. For example, at 60% dividend on a share of face value ₹10: \[ \text{Dividend per share} = \frac{60}{100} \times 10 = \text{₹ } 6 \]