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NISM Certifications · NISM-Series-XV: Research Analyst · Valuation Principles

Vihaan Ltd has a share price of Rs 360, earnings per share of Rs 24 and a dividend payout ratio of 40%. What is its dividend yield?

The dividend yield is 2.67%. Dividend per share is 40% of Rs 24, which is Rs 9.60, and dividing this by the price of Rs 360 gives about 2.67%.

  1. A2.67%
  2. B4.00%Correct
  3. C6.67%
  4. D10.00%

Explanation

Dividend per share = 24 x 0.40 = Rs 9.60. Dividend yield = 9.60 / 360 = 2.67%. So the correct figure is 2.67%, and 4.00% is wrong.

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