60.00%
Rs 60.00
Rs 50.00
2.00%
Answer is Wrong!
Answer is Right!
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
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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.