Even if shares are issued at premium or discount, the company will pay you dividend on paid value proportion to face value..
Lets take an example:
FACE VALUE : 100
ISSUE PRICE : 110 (at premium)
PAID UP VALUE : 55 (Half of issue price)
Hence, dividend is paid on Rs. 50 only (proportioned to face value against paid up value)..
Even if shares are issued at premium or discount, the company will pay you dividend on paid value proportion to face value..
Lets take an example:
FACE VALUE : 100
ISSUE PRICE : 110 (at premium)
PAID UP VALUE : 55 (Half of issue price)
Hence, dividend is paid on Rs. 50 only (proportioned to face value against paid up value)..
dear friends
if some of you are younger to praveen sharma sir,please address him as sir as he is elder to us and moreover he is a teacher,no offence meant from me but just my views.
please do not get me wrong.
regards
Dividend is paid on share capital (paidup share capital) not on premium
It's Paid up value. very well explained earlier. But I would like to answer the good Que asked by CA Jain sir. Sir it will be definitely Fave value in such case.
Hi vinay
u mean to say that,if share are issued at prem/disc. then dividend are cal on f.v and otherwise on paidup value.....???
CAclubindia
