Calculate Your Dividend
Find the cash return from shares using rate and nominal value.
Equation
y = x * 10 * (5 / 100)
Graph
Table
| x | y |
|---|---|
| 0 | 0 |
| 10 | 5 |
| 20 | 10 |
| 30 | 15 |
| 40 | 20 |
| 50 | 25 |
| 60 | 30 |
| 70 | 35 |
| 80 | 40 |
| 90 | 45 |
| 100 | 50 |
What this lesson covers
What you do
You shape the function y = x * 10 * (r / 100) and watch the graph answer.
Challenges to clear
- Set the rate r to 10%: 40 shares (x = 40) pay a ₹40 dividend.
- Double the shares, double the cash: x = 80 pays ₹80.
- These shares have a face value of Rs 25, not Rs 10. Slide f there.
- Now the rate: 40 shares must pay Rs 200. Dividend is always a percentage of FACE value, never of what you paid.
Check yourself
If you bought shares at Rs 150 (Market Value) but their Nominal Value is Rs 100, and the dividend rate is 10%, what is the dividend?
Why is Market Value ignored when calculating the dividend amount?
- Rs 10 (10% of Rs 100 NV) — correct
- Rs 15 (10% of Rs 150 MV)
- Rs 50 (50% of Rs 100)
- Rs 0 (Dividend depends on profit, not value)
- Dividend is a percentage of the face value (Nominal Value) printed on the share certificate. — correct
- Market Value changes every day, so it is too unstable for calculation.
- Companies only care about how much you paid for the share.
- Market Value is used to calculate Yield, not Dividend Amount.
Think about it
- 40 shares of nominal value ₹10 at a 10% dividend rate. How much cash do you receive?