Dividend computation from number of shares and face value A company declared an annual dividend of 10%. What is the annual dividend received by Ram who owns 1500 shares of face value $10 each?

Introduction / Context:Dividend declared as a percentage is always applied on the face value (par value) of a share, not on its market price. The total dividend equals the per-share dividend multiplied by the number of shares held.

Given Data / Assumptions:

• No. of shares = 1500
• Face value per share = $10
• Dividend rate = 10% per annum

Concept / Approach:Per-share dividend = dividend% * face value. Then multiply by the number of shares to get the total cash dividend.

Step-by-Step Solution:Per-share dividend = 10% * $10 = $1Total dividend = $1 * 1500 = $1500

Verification / Alternative check:Cross-check with proportion: 10% of total face value ($15,000) = $1500, identical.

Why Other Options Are Wrong:$1400 and $1600 are not 10% of $15,000; $1700 and $1200 are arbitrary.

Common Pitfalls:Applying the percentage to market value instead of to face value.

Final Answer:$ 1500