A FV₹100 share pays ₹5 yearly and costs ₹80. Dividend rate and yield are
A5% and 4%
B5% and 6.25%
C6.25% and 5%
D4% and 5%
Answer & Solution
Correct answer: B. 5% and 6.25%
₹5 is 5% of the ₹100 face value and 6.25% of the ₹80 market price.
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