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%.
- A2.67%
- B4.00%Correct
- C6.67%
- 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.
Did you get it right without looking?
One question tells you little. A timed set on Valuation Principles shows your real accuracy, how long you take and where you lose marks.
More Valuation Principles questions
- A firm has a cost of equity of 14%, a pre-tax cost of debt of 10%, a tax rate of 30%, and a target capital structure of 60% equity and 40% d…
- A firm's next-year dividend is expected to be Rs 12 per share. Dividends are expected to grow at 6% a year forever, and the required return …
- A firm has a net profit of Rs 50 crore, 10 crore shares outstanding, and a retention ratio of 40%. Its share trades at Rs 75. What are its E…
- A company has a trailing EPS of Rs 40 and its shares trade at Rs 600. What is its trailing price-to-earnings (P/E) multiple?
- A company has a book value per share of Rs 80 and a return on equity of 15%. If its price-to-book ratio is 3, and earnings per share equals …
- Which of the following is a recognised limitation of the P/E ratio as a valuation tool?