answersLogoWhite

0

Dividend rate is defined as a % when compared to the face value of a stock.

Dividend is nothing but periodic sharing of profit by public limited companies with its share holders.

Assuming a stock with a face value of Rs. 10/- declares a dividend of Rs. 5/- per share then dividend rate would be 50%

User Avatar

Wiki User

16y ago

What else can I help you with?

Continue Learning about Finance

What is the difference between an ordinary dividend and a qualified dividend?

The main difference between an ordinary dividend and a qualified dividend is how they are taxed. Qualified dividends are taxed at a lower rate than ordinary dividends, which are taxed at the individual's regular income tax rate.


How do you calculate preference shares dividend rate?

The dividend rate for preference shares is calculated by dividing the annual dividend payment by the nominal value (or par value) of the shares and then multiplying by 100 to express it as a percentage. For example, if a preference share has a nominal value of $100 and an annual dividend of $5, the dividend rate would be ($5 / $100) × 100 = 5%. This rate indicates the return that investors can expect from holding the preference shares.


What is a dividend calculator used for?

A dividend calculator helps you figure out your returns. You will plug in interest, rate, and the amount, and it will calculate the payments you will receive.


Anron corporation paid a dividend today of 3.50 per share and the dividend is expected to grow at a constant rate of 6 per year. If Anron stock is selling for 61.83 per share the stockholders' expecte?

To find the stockholders' expected return, we can use the Gordon Growth Model (Dividend Discount Model), which states that the expected return equals the dividend yield plus the growth rate. The dividend yield is calculated as the annual dividend divided by the stock price: ( \frac{3.50}{61.83} \approx 0.0566 ) or 5.66%. Adding the growth rate of 6% gives an expected return of approximately 11.66%.


A stock is expected to pay a dividend of 1 at the end of the year The required rate of return is rs 11 percent and the expected constant growth rate is 5 percent?

A stock is expected to pay a dividend of $1 at the end of the year. The required rate of return is rs 11%, and the expected constant growth rate is 5%. What is the current stock price?

Related Questions

What is the difference between an ordinary dividend and a qualified dividend?

The main difference between an ordinary dividend and a qualified dividend is how they are taxed. Qualified dividends are taxed at a lower rate than ordinary dividends, which are taxed at the individual's regular income tax rate.


How do you calculate preference shares dividend rate?

The dividend rate for preference shares is calculated by dividing the annual dividend payment by the nominal value (or par value) of the shares and then multiplying by 100 to express it as a percentage. For example, if a preference share has a nominal value of $100 and an annual dividend of $5, the dividend rate would be ($5 / $100) × 100 = 5%. This rate indicates the return that investors can expect from holding the preference shares.


A corporation with a marginal tax rate of 34 percent would receive what after-tax dividend yield on a 12 percent coupon rate preferred stock bought at par assuming a 70 percent dividend exclusion?

A corporation with a marginal tax rate of 34 percent would receive what after-tax dividend yield on a 12 percent coupon rate preferred stock bought at par assuming a 70 percent dividend exclusion?


Is dividend yileds subject to tax?

Yes, at the special dividend rate, which currently is equal to the Cap gains rate (15%) for most people. Much lower (5%) for low earners.


What is a dividend calculator used for?

A dividend calculator helps you figure out your returns. You will plug in interest, rate, and the amount, and it will calculate the payments you will receive.


Growth rate in Dividend discount model of valuation?

The dividend discount model of valuation is one strategy for investing in financial markets. The growth rate of this valuation determines whether investment is profitable.


What is the dividend tax rate?

The federal tax rate for what are known as "qualifying dividends" is the same as the long term capital gains tax rate. The rate for all other dividends is the same as the ordinary income rate. Mutual funds sometimes issue a dividend known as a "capital gains dividend" or a "capital gains distribution." This is a capital gain passed through from the fund and is treated as a long term capital gain to the shareholder.


Anron corporation paid a dividend today of 3.50 per share and the dividend is expected to grow at a constant rate of 6 per year. If Anron stock is selling for 61.83 per share the stockholders' expecte?

To find the stockholders' expected return, we can use the Gordon Growth Model (Dividend Discount Model), which states that the expected return equals the dividend yield plus the growth rate. The dividend yield is calculated as the annual dividend divided by the stock price: ( \frac{3.50}{61.83} \approx 0.0566 ) or 5.66%. Adding the growth rate of 6% gives an expected return of approximately 11.66%.


How are dividends listed for stocks in the newspaper?

Dividend (Div). The rate of annual dividend is shown; it is generally an estimate based on the previous quarterly or semiannual payment.


How to calculate prefrred dividend before devidend declared?

Calculation of preferred dividend does not depend upon the dividend declared at the end of the year. Preferred dividend is fixed and is calculated using the fixed percentage of preferred dividend. For example a company has 1000 shares of 6 preferred stock outstanding, each with par value of $100. 6 mentioned before preferred stock is the dividend rate(6%) to be received by preferred shares. Preferred Dividend = No. of preffered shares outstanding x Par value of each share x Dividend rate. = 1000 x 100 x 6%. = $ 6000. Dividend per share = 6000/1000 = $6


How do you calculate annual dividend on preferred stock?

To calculate the annual dividend on preferred stock, you multiply the par value of the stock by the dividend rate (or yield) specified by the company. For example, if a preferred stock has a par value of $100 and a dividend rate of 5%, the annual dividend would be $100 x 0.05, resulting in $5 per share per year. If the par value is different or if any additional factors apply, adjust the calculation accordingly.


Current corporate dividend tax rate in India?

At per the text book its 13.2345%