Question

Dividend paid for share by the
company is based on
o
market value
O face value
premium
NAV​

Answer 1

Answer:

We will discuss here about the dividend and rate of dividend. The part of the annual profit of a company distributed among its shareholders is called dividend. The dividend is always declared by the company on the face value (FV) of a share irrespective of its market value. The rate of dividend is expressed as a percentage of the face value of a share per annum.

Definition of Dividend: The profit which a share holder gets (out of the profits of the company) for his investment from the company is called dividend.

I. Meaning of the statement “r % $ 100 shares at $ P”

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