Paid dividend is Rs 20 and dividend yield is 40% then current price would be

60.00%
Rs 60.00
Rs 50.00
2.00%

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.

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