Q.A share of face value ₹10 pays a dividend of 8%. If its market value is ₹12, find

Dividend is always calculated on face value, while yield expresses that dividend as a percentage of what was actually paid — the market value.

1. Dividend per share $= \dfrac{8}{100}\times10 = ₹0.80$.
2. Yield $= \dfrac{0.80}{12}\times100 = 6.67\%$ (approximately).
   ✓Final answer

   (i) ₹0.80 per share (ii) Yield $\approx 6.67\%$

1. Dividend per share Dividend is always calculated on the FACE value:

   $\text{Dividend per share} = \frac{8}{100}\times10 = \frac{80}{100} = ₹0.80$

2. Yield Yield is the dividend expressed as a percentage of the MARKET value actually paid:

   $\text{Yield \%} = \frac{\text{Dividend per share}}{\text{Market Value}}\times100 = \frac{0.80}{12}\times100 = \frac{80}{12} = 6.67\%\ (\text{approx.})$

   Check (independent recomputation): $\dfrac{80}{12} = 6\dfrac{8}{12} = 6\dfrac{2}{3} = 6.667\ldots$, rounding to $6.67\%$ — confirms the value above.
   ✓Final answer

   (i) Dividend per share = ₹0.80 (ii) Yield $\approx 6.67\%$

Calculating the dividend as 8% of the MARKET value (₹12) instead of the FACE value (₹10), giving a wrong dividend of ₹0.96 instead of ₹0.80. Also, when finding yield, dividing the dividend by the face value instead of the market value, which would wrongly reproduce the original dividend rate of 8% instead of the true yield.