Student
180 Points
Joined July 2010
If your focus is to solve question then there may be two situaiton.
1. question provided dividend rate @ 10% (say)
2. question provided dividend yield rate @ 10% (say)
If given rate is dividend rate then charge on Face value.
If given rate is dividend yield rate then charge on Market value.
Because divedend yield is calculated on the basis of market price of share
dividend yield = dividend / current market price X100%