Dividend computation from number of shares and face value A company declared an annual dividend of 10%. What annual dividend does Anu receive if she owns 4000 shares of face value $100 each?

Introduction / Context:
The dividend paid equals the declared percentage times the face value, multiplied by the number of shares held. Market price is irrelevant to the dividend amount.

Given Data / Assumptions:

• No. of shares = 4000
• Face value per share = $100
• Dividend rate = 10%

Concept / Approach:
Per-share dividend = 10% * $100 = $10. Total dividend = $10 * 4000 = $40,000.

Step-by-Step Solution:
Compute per-share dividend = $10Multiply by number of shares: 4000 * 10 = $40,000

Verification / Alternative check:
10% of total face value ($400,000) is $40,000, matching.

Why Other Options Are Wrong:
$45k, $50k, $60k are not 10% of $400k; $35k is too low.

Common Pitfalls:
Using market value to compute dividend instead of face value.

Final Answer:
$ 40000