Dividend is always calculated on the Face Value of a share.

True

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False

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Solution

The correct option is A
True

The part of annual profit of a company which is distributed per share among shareholders is called dividend. It doesn't depend on the Market Value and is always calculated on the Face Value of the share.

Thus, the given statement is true.

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Similar questions

560

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Brokerage is always calculated on ___ value of shares.

Shubendhu owns 560 shares of a company. The face value of each share is ₹25. The company declares a dividend of $9 %$ . Calculate:

(i) The dividend that Shubendhu will get.

(ii) The rate of interest on his investment if Shubendhu had paid ₹30 for each share.

Shubendhu owns 560 shares of a company. The face value of each share is Rs. 25. The company declares a dividend of $9 %$ . Calculate:

(i) The dividend that Shubendhu will get.

(ii) The rate of interest on his investment if Shubendhu had paid Rs. 30 for each share.

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