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%
D. 25%
Answer: Option C
Solution (By Examveda Team)
Dividend yield is calculated as:Dividend Yield = \(\frac{\text{Dividend per Share}}{\text{Market Value per Share}} \times 100\%\)
Given:
Dividend per share = Rs. 2
Market value per share = Rs. 25
So,
Dividend Yield = \(\frac{2}{25} \times 100 = 8\%\)
Hence, the correct answer is Option C: 8%.
This Question Belongs to Commerce >> Accounting
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Yield=(
Market Price per Share
Dividend per Share
)×100
🔢 Given:
Dividend per Share = Rs. 2
Market Price per Share = Rs. 25
Dividend
Yield 8% is right answer