Query regarding Dividend

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On what basis Dividend is given on preference shares??? Is it on paid up value or face value or issud price??? And what is difference between paid up value and issue price???? pl. help me out ??? If it is given on paid up capital, how can they get fixed dividend as company can call for more money if it is not fully paid up???????

Replies (5)
Originally posted by :Bhupesh
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On what basis Dividend is given on preference shares??? Is it on paid up value or face value or issud price??? And what is difference between paid up value and issue price???? pl. help me out ??? If it is given on paid up capital, how can they get fixed dividend as company can call for more money if it is not fully paid up???????

Dividend is also received on Face value irrespective of types of Share.

Issue price is the Price at which company issue its share.

Paid up price is the price which is called by a company from its shareholder.

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Originally posted by :Naveen Chand Khulve
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Originally posted by :Bhupesh


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On what basis Dividend is given on preference shares??? Is it on paid up value or face value or issud price??? And what is difference between paid up value and issue price???? pl. help me out ??? If it is given on paid up capital, how can they get fixed dividend as company can call for more money if it is not fully paid up???????
Dividend is also received on Face value irrespective of types of Share.
Issue price is the Price at which company issue its share.
Paid up price is the price which is called by a company from its shareholder.

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Thnxs a lot... But if specifically it is mentioned in the question that dividend is given on paid up value than we have to take it on paid up value naaa...



 
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dividend on preference shares is usually given on face value.....

Originally posted by :Naveen Chand Khulve
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Thanks a lot for helping me out yaar... But if specifically mentioned in the question that dividend are declared on issue price then what????


 
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Originally posted by :Bhupesh
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Originally posted by :Naveen Chand Khulve


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Thanks a lot for helping me out yaar... But if specifically mentioned in the question that dividend are declared on issue price then what????


 
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 If it is given in question then calculate accordingly otherwise calculate dividend on face Value always.
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