Accounting Multiple Choice Question – 14 February 2021

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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The following data is available for XYZ plc.

  • issued ordinary shares  — 1,000,000
  • nominal value per share  —  £1.00
  • market value per share  — £2.30
  • net profit after taxation  —  £200,000
  • retained earnings % of net profit after tax  —  50%

What is the net dividend yield?

Select ONE answer:

  1. 4.35%
  2. 8.70%
  3. 10.0%
  4. 20.0%

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

  1. Correct – 50% of £200,000 = £100,000k or £0.10 per share / £2.30 = 4.35%
  2. Not correct
  3. Not correct
  4. Not correct

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