A company’s share capital consists of 2,800,000 ordinary shares of 25 pence each. During its last financial year the company paid a dividend of 8 pence per share. The market price of the shares is currently £1.75. Calculate the dividend yield correct to one decimal place.

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 55E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...
icon
Related questions
Question

A company’s share capital consists of 2,800,000 ordinary shares of 25 pence each.
During its last financial year the company paid a dividend of 8 pence per share.
The market price of the shares is currently £1.75.
Calculate the dividend yield correct to one decimal place.

Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Dividends
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning