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Commerce · Q921

Accounting

Graduate and Post Graduate · Commerce · question 921

Q921

The dividend per share in a company is Rs. 2, earning per share is Rs. 5 and the market value of shares is Rs. 25. What will be the yield?

A.
20%
B.
12.5%
C.
8%
Answer
D.
25%

Answer: Option C

Solution

Answer: Option C
Solution:
Dividend yield is calculated as:
Dividend Yield =

Given:
Dividend per share = Rs. 2
Market value per share = Rs. 25

So,
Dividend Yield =

Hence, the correct answer is Option C: 8%.