Calculate the total dividend paid on 800 bank shares that earn a dividend of K0.30 (30 toea) per share.
Total dividend = Number of shares x Dividend per share
Total dividend = 800 shares x K0.30 per share
Total dividend = K240
Therefore, the total dividend paid on 800 bank shares earning K0.30 per share is K240.
If the dividend is 15%, calculate the amount of dividend on 2500 shares with a face value of K0.50 (50 toea).
First, calculate the face value of the shares:
Face value per share = K0.50
Number of shares = 2500
Total face value = K0.50 x 2500 = K1250
Next, calculate the dividend amount at 15% of the face value:
Dividend rate = 15%
Dividend amount = 15% of K1250
Dividend amount = 0.15 x K1250
Dividend amount = K187.50
Therefore, the amount of dividend on 2500 shares with a face value of K0.50 and a dividend rate of 15% would be K187.50.
What is face value, like define it.
Face value, also known as par value, is the nominal or original value of a financial instrument such as a stock, bond, or currency, as stated by the issuer. It represents the value of the security as stated on the instrument itself, and it serves as the basis for calculating interest payments, dividends, and the repayment of principal.
For stocks, face value is not as relevant as it is for bonds, as the face value of a stock is typically very small (e.g., K0.50 or K1) and does not necessarily reflect the true market value of the stock. Stocks are usually traded at market prices which are determined by supply and demand in the market, and the face value is more of a traditional or accounting value.