NISM Certifications · NISM-Series-XV: Research Analyst · Terminology in Equity and Debt Markets
A stock trades at Rs 480 and its last annual dividend was Rs 12 per share. What is its dividend yield?
The dividend yield is 2.5%. It is calculated by dividing the annual dividend of Rs 12 by the market price of Rs 480, which gives 0.025. This expresses the cash dividend as a percentage of the current share price.
- A4.0%
- B2.5%Correct
- C25.0%
- D0.4%
Explanation
Dividend yield = dividend per share / market price = 12/480 = 0.025 = 2.5%. Check: 2.5% of 480 = 12. The 4.0% option wrongly uses a base of Rs 300, and 25% misplaces the decimal.
Did you get it right without looking?
One question tells you little. A timed set on Terminology in Equity and Debt Markets shows your real accuracy, how long you take and where you lose marks.
More Terminology in Equity and Debt Markets questions
- A stock closed at Rs 400 on Monday and Rs 440 on Tuesday. The stock is subject to a 10% price band. On Wednesday, the highest price at which…
- A bond with face value Rs 1,000 pays an annual coupon of 8%. It is bought at Rs 800. What is its current yield?
- A stock has a market price of ₹600, earnings per share of ₹30 and a dividend per share of ₹9. What are its price-earnings ratio and dividend…
- The term 'current yield' of a bond is defined as:
- A company's stock closed at Rs 500 and its 52-week high is Rs 625. The stock is trading at what percentage below its 52-week high?
- A company has 10 crore shares outstanding at a market price of Rs 250 per share. It has total debt of Rs 600 crore and cash and equivalents …