Actually, why we want to find face value..can anyone explain me
Divya said:
(Thu, Dec 30, 2010 10:49:28 AM)
face value means actual valuu here.......
Vinod said:
(Mon, Jan 17, 2011 10:01:44 AM)
face value means shares orginal price.
Chika said:
(Fri, Apr 29, 2011 06:35:45 AM)
Face value is the shares original (nominal) price. That has to be detemined before knowing the annual income of the investor.
Ravi said:
(Sun, Jul 17, 2011 05:15:27 AM)
There is formula why we are want use this method?
Gowthami said:
(Mon, Sep 12, 2011 03:49:42 PM)
In the above question, they have asked us to find out his annual income which can only be done by using dividend. Dividend can be calculated only with face value but not the market value. Thats the reason first we found out number of shares and calculated the face value and in turn we used it in calculating his earnings.
Dividend is calculated only on face value because, dividend means the earnings per year for a share holder. The company normally calculates its profit percentage and adds it to the face value and will pay to the share holder but the company won't calculte it on market value. Thats the reason face value is mandatory in calculating the dividend or annual income.
