Question

A share with face value 100 and rate of dividend 12% has market price of 178 if a person has 300 shares the dividend that he will receive is

Answer 1

The given question is based on the concept of dividend yield where the term 'dividend yield' shows how much a company has paid out in dividends over the course of a financial year. It is easier to see how much return the shareholder can expect to receive per dollar they have invested.

As per the Dividend Yield method,

the percentage of dividend yield is calculated by the following formula:-

a. Rate of dividend (R)= 12%,

b. Face value per share (FV)= 100/- per share

c. Annual Dividend paid per share (d)= R x FV = 12% x 100 = 12/- per share

d. Market Price per share (P) = 178/- per share

e. Percentage of Dividend Yield = (d / P) x 100 = (12/178) x 100 = 6.74%

In the given question, it is required to estimate how much dividend will a person holding 300 shares receive. So accordingly, if the amount of dividend yield for one share is of 6.74/- , then for 300 shares, the amount of dividend yield shall be (300 x 6.74%) = 20.22/-

Therefore, its obviously certain as per the above-mentioned assumptions that a shareholder is expected to receive a dividend amount of 20.22/- for 300 shares in one financial year.

Answer 2

3600.

Step-by-step explanation:

Given information :

• Face value         = Rs.100
• Market price      = Rs.178
• Rate of dividend = 12℅
• No of shares = 300

• To find : The dividend earned

• We can find it by using the dividend yield method.

• As per Divided yield method,

• Dividend per share = Rate of dividend × Face value

          = 12℅ × 100

          = $\frac{12}{100}$×100

           = Rs. 12

• Dividend per share = Rs.12

• Rate of Dividend earned =   $\frac{Divided per share}{Market price}$ × 100

       = $\frac{12}{100}$×100

       = 6.74℅

• Dividend received on 300 shares =  Dividend per share × 300 shares.

      = 12×300 = 3600