# 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

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.

## Recent Articles

1. ### Relation between Diameter Radius and Circumference |Problems |Examples

Apr 22, 24 05:19 PM

Relation between diameter radius and circumference are discussed here. Relation between Diameter and Radius: What is the relation between diameter and radius? Solution: Diameter of a circle is twice

2. ### Circle Math | Terms Related to the Circle | Symbol of Circle O | Math

Apr 22, 24 01:35 PM

In circle math the terms related to the circle are discussed here. A circle is such a closed curve whose every point is equidistant from a fixed point called its centre. The symbol of circle is O. We…

3. ### Preschool Math Activities | Colorful Preschool Worksheets | Lesson

Apr 21, 24 10:57 AM

Preschool math activities are designed to help the preschoolers to recognize the numbers and the beginning of counting. We believe that young children learn through play and from engaging

4. ### Months of the Year | List of 12 Months of the Year |Jan, Feb, Mar, Apr

Apr 20, 24 05:39 PM

There are 12 months in a year. The months are January, February, march, April, May, June, July, August, September, October, November and December. The year begins with the January month. December is t…