The correct answer is C. Rs 50.00.
Dividend yield is the annual dividend paid by a company divided by the current market price of the company’s stock. It is expressed as a percentage.
In this case, the dividend yield is 40%. This means that for every Rs 100 invested in the company, the investor will receive Rs 40 in dividends per year.
To calculate the current price of the stock, we need to divide the dividend by the dividend yield.
Dividend = Rs 20
Dividend yield = 40% = 0.4
Current price = Rs 20 / 0.4 = Rs 50.00
Therefore, the current price of the stock is Rs 50.00.
Option A is incorrect because it is the dividend yield, not the current price.
Option B is incorrect because it is the dividend, not the current price.
Option D is incorrect because it is the dividend yield expressed as a decimal, not the current price.