Dividend and Rate of Dividend

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”

The statement r % $ 100 shares at $ P means the following:

1. The face value of a share is $ 100.

2. The market value of a share is $ P.

3. The dividend (profit) on a share is r % on NV, i.e., $ r per annum.

4. The income from one share for one year is $ r on $ P.

 

II. Meaning of the statement “r % $ K shares at $ P”

The statement r % $ K shares at $ P means the following:

1. The face value of a share is $ K.

2. The market value of a share is $ P.

3. The dividend (profit) on a share is r% on $ K, i.e., $ \(\frac{rK}{100}\) per annum.

4. The income from one share for one year is $ \(\frac{rK}{100}\)on $ P.

 

For Example:

“20 % of $ 100 shares at $ 140” means that

1. The face value of a share is $ 100.

2. The MV of 1 share is $ 140.

3. The dividend on 1 share is 20 % of $ 100 = $ 20 per annum.

4. The income from on $ 140is $ 20 for one year.

Similarly, “25 % of $ 35 shares at a discount of $ 15” means that

1. The NV of a share is $ 35

2. The MV of 1 share is $ 35 - $ 15 = $ 20.

3. The dividend on 1 share is 25 % of $ 35 = $ (\(\frac{25}{100}\) × 35) = $ 8.75 per annum.

4. The income from on $ 20 is $ 8.75 for one year.

 Shares and Dividends






10th Grade Math

From Dividend and Rate of Dividend to HOME




Didn't find what you were looking for? Or want to know more information about Math Only Math. Use this Google Search to find what you need.



New! Comments

Have your say about what you just read! Leave me a comment in the box below. Ask a Question or Answer a Question.

Share this page: What’s this?

Recent Articles

  1. 2nd Grade Place Value | Definition | Explanation | Examples |Worksheet

    Sep 14, 24 04:31 PM

    2nd Grade Place Value
    The value of a digit in a given number depends on its place or position in the number. This value is called its place value.

    Read More

  2. Three Digit Numbers | What is Spike Abacus? | Abacus for Kids|3 Digits

    Sep 14, 24 03:39 PM

    2 digit numbers table
    Three digit numbers are from 100 to 999. We know that there are nine one-digit numbers, i.e., 1, 2, 3, 4, 5, 6, 7, 8 and 9. There are 90 two digit numbers i.e., from 10 to 99. One digit numbers are ma

    Read More

  3. Worksheet on Three-digit Numbers | Write the Missing Numbers | Pattern

    Sep 14, 24 02:12 PM

    Reading 3-digit Numbers
    Practice the questions given in worksheet on three-digit numbers. The questions are based on writing the missing number in the correct order, patterns, 3-digit number in words, number names in figures…

    Read More

  4. Comparison of Three-digit Numbers | Arrange 3-digit Numbers |Questions

    Sep 13, 24 02:48 AM

    What are the rules for the comparison of three-digit numbers? (i) The numbers having less than three digits are always smaller than the numbers having three digits as:

    Read More

  5. Comparison of Two-digit Numbers | Arrange 2-digit Numbers | Examples

    Sep 12, 24 03:07 PM

     Compare 39 and 36
    What are the rules for the comparison of two-digit numbers? We know that a two-digit number is always greater than a single digit number. But, when both the numbers are two-digit numbers

    Read More