Question

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

• A. 20 per cent
• B. 12.5 per cent
• C. 8 per cent
• D. 25 per cent

Answer 1

The correct option is A 20 per cent

Yield ratio = A financial ratio that indicates how much a company earns after pays out in dividends each year relative to its share price. yield ratio is represented as a percentage.

yield ratio = ( Earning per share / Share price)* 100

yield ratio = ( Rs.5 / Rs. 25) * 100

yield ratio = 20 percent.