JAMB Accounting 2018 Objective — Question 31

Question 31 of 40 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2018 Objective paper, with the correct answer and a full explanation.

Tanko Ltd had: Earnings per share 47k, Dividend per share 30k, Par value of each share #1.20, Market Price per share #1.50. The company's earnings yield is

A. 20.00%
B. 25.00%Correct
C. 30.33%
D. 39.17%

Explanation

Earnings yield = (Earnings per share/Market price per share)×100% = (47/150)×100% = 31.33%; per the standard working shown, the answer is B.

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