Tag: Dividend Yield

Alex plc has an issued ordinary share capital of 240,000 ordinary shares of £0.50 each.

The company pays a total ordinary share dividend of £9,600.

The current market price of an ordinary share is £3.20.

What is the current dividend yield?

Select ONE answer:

1. 1.25%
2. 2%
3. 4%
4. 8%

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 – DY = Dividend per Share / Price per share – (9,600 / 240,000) / £3.20 = 1.25%
2. Not correct
3. Not correct
4. Not correct

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