Q.The face value of a share is ₹10 and a dividend of 12% is declared on it. The dividend received per share is: (A) ₹1.20 (B) ₹12 (C) ₹0.12 (D) it depends on the market price of the share

Dividend is a percentage of the face value, independent of market price.

Dividend is declared as a percentage of the face value, so the dividend per share is

Hence option (A) is correct.

Why the other options are wrong:

• (B) $₹12$ takes $12\%$ as $12$ rupees outright, ignoring that $12\%$ of $₹10$ is only $₹1.20$.
• (C) $₹0.12$ divides by $100$ but forgets to multiply by the face value $₹10$ (it is $12\%$ of $₹1$, not of $₹10$). …

Choosing (D) by assuming dividend depends on market price. The dividend rate always applies to the face value; market …