Q20 The current market price of an equity share of a company is OMR 70, cost of equity is 14.85% and expected growth rate in dividends is 7.05%, then what is current dividend per share? a. OMR 5 per share b. OMR 5.145 per share c. OMR 15.33 per share d. OMR 5.46 per share

Q20 The current market price of an equity share of a company is OMR 70, cost of equity is 14.85% and expected growth rate in dividends is 7.05%, then what is current dividend per share? a. OMR 5 per share b. OMR 5.145 per share c. OMR 15.33 per share d. OMR 5.46 per share

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter14: Investing In Stocks And Bonds

Section: Chapter Questions

Problem 1DTM

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Concept explainers

Stock Yields

The stock yield is otherwise known as the dividend yield. The dividend yield is an annual payment of the stock dividends to the holder of a firm’s stock. The dividend yield is a financial ratio to measure the value of dividend payout every year for the relative stock price. The yield of a stock is usually shown in a percentage that discloses the expected future earnings from stock depending on the current stock price in the future. Stock yield will change depending on the market fluctuations and in accordance with the market fluctuations, the dividends will be increased or decreased by the firm.

Question

Q20

The current market price of an equity share of a company is OMR 70, cost of equity is 14.85% and expected growth rate in dividends is 7.05%, then what is current dividend per share?

OMR 5 per share

OMR 5.145 per share

OMR 15.33 per share

OMR 5.46 per share

Definition Definition Amount of return a company generally pays to its equity investors. The cost of equity represents the compensation required by the market in lieu of owning the asset firm and simultaneously bearing the risk of ownership.

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