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NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Investing in Stocks

Meera's adviser explains the dividend yield of a stock. A stock priced at Rs 250 paid a total dividend of Rs 7.50 per share in the last year. What is the dividend yield?

The dividend yield is 3%. It is calculated as the annual dividend per share of Rs 7.50 divided by the current market price of Rs 250, which equals 0.03.

  1. A3.0%Correct
  2. B30%
  3. C2.5%
  4. D7.5%

Explanation

Dividend yield = dividend per share / market price = 7.50/250 = 3%. 30% inverts the decimal placement. 2.5% and 7.5% are not derived from these figures.

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