Dividend on FV or MP ? Help

dividend is paid on face value.

dividentd are usually paid on face value of share . for example if face value of share is rs. 10 and dividend paid is rs.10 per share then  percentage of dividend paid on share is 100 percent.

Mr Sunil Agarwal

Dividend is always paid onn face value & not usually

Dividend is paid as follows- (examples)

1- Rs. 10 per share OR

2- 10% on the face value of share capital.

Originally posted by : CA Azim Khan
	Dividend is paid as follows- (examples) 1- Rs. 10 per share OR   2- 10% on the face value of share capital.

AGREED...

paid on face value of a share.......... no link with market price..........

can't be associated with market price...

Paid only on the face value of shares out of the reserves

 only ON Face Value of the shares, nothing to do with MP in this regard.

Thanks to all

Thanks a lot for clarifying..

dividend is paid on face value only....

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%

dividend is paid on  face value only........