Question 19 of 30
Q.The calculation of dividend is based on :
(a) Market value
(b) Capital
(c) Face value
(d) None of these
Puducherry TnboardTamil Nadu HSC First Year (DGE) Commerce Board 2023MCQ· 1mImportance★★★★★
63% · 19/30 Questions
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Start your 14-day free trial to unlock the full solution →Dividend is computed as a percentage of the face value of the share, so the answer is option (c).
A company declares its dividend as a rate percent, and this rate is always applied to the face (nominal) value of a share, never to its market price. For example, a 10% dividend on a share of face value ₹100 gives ₹10 per share, regardless of whether the share trades …
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