Day: February 6, 2023

The following information has been obtained for a company:

• declared dividend rate – £0.05
• market price per share – £4.00
• nominal value of shares – £0.50

What is the dividend yield?

Select ONE answer:

1. 1.25%
2. 2.50%
3. 5.00%
4. 10.00%

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- £0.05 / £4.00 = 1.25%
2. Not correct
3. Not correct
4. Not correct

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