Day: February 14, 2021

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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