Paid dividend with dividend yield 25% is Rs 5 then cost price would be

The correct answer is D. Rs 20.00.

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 25%. This means that for every Rs 100 invested in the company, the investor will receive Rs 25 in dividends per year.

The dividend paid is Rs 5. This means that the investor has invested Rs 20 in the company.

To calculate the cost price, we divide the dividend paid by the dividend yield.

Cost price = Dividend paid / Dividend yield

Cost price = Rs 5 / 25%

Cost price = Rs 20.00