Accounting Multiple Choice Question – 5 September 2021

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

apple devices books business coffee
Photo by Serpstat on Pexels.com

A company has an issued share capital of 8 million shares at £0.50 par value each. 

It pays a dividend of £1.6 million. The dividend yield is currently 12.5 %. 

What is the current market price of each share?

Select ONE answer:

  1. £0.50
  2. £0.80
  3. £1.60
  4. £3.20

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 3

  1. Not correct
  2. Not correct
  3. Correct ==> (1,600,000 / 8,000,000) = £0..20 dividend per share / 1.60 ==> 12.5% dividend yield
  4. Not correct

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.