The rate of interim dividend is lesser than final dividend. - Vidyadip

Question

The rate of interim dividend is lesser than final dividend.

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Answer

Final dividend is declared at the end of the financial year whereas Interim dividend is declared between two annual general meetings.
Interim dividend is declared when the company makes good profit in the first half of the financial year.
Interim dividend is declared twice in a year.
Hence the rate of dividend is lower than final dividend.
Thus, it is rightly said that the rate of interim dividend is lesser than final dividend. OR Interest is paid to the creditor of the company.

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