WHAT IS THE RULE OF DIVIDEND?
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The formula to find the dividend is:
Dividend = Divisor x Quotient + Remainder
Usually, when we divide a number by another number, it results in an answer, such that;
x/y = z
Here, x is the dividend, y is the divisor and z is the quotient.
Dividend/Divisor = Quotient
Hence, we can write;
Dividend = Divisor x Quotient
And if any remainder is left, after the division method, then;
Dividend = Divisor x Quotient + Remainder
Hence, this is the formula.
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the company can declare and pay a dividend only where there is a profit. In other words ,dividend is payable only out of profits.
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