Assessment 2 - Task 1.8

Kylie_Mounce

Hi,

I have the following information -

A company invests £120,000 in shares of a quoted company X. X has 35 million £1 shares in issue. The current market price of X's share is £3.84. The company's operating profit in 20X3 was £13.67 million. The dividend paid to shareholders was 25p per share.

Calculate the dividend yield for X?

Please help with an easy way to remember this for future!!!

Thanks

Bertie

Have a re-read of your study books.

Kylie_Mounce

I do not have them on me at the moment

Casu

But your other question (posted at the same time) indicates you are studying. Plus as I said on the other one - have a go first!!!!! You wont learn anything if you just ask others to post answers.

Kylie_Mounce

Hi, again. I visited the parents and decided to have a quick go at online assessments and therefore did not have my books on me (sorry!). From the 2 questions I asked (at the same time) you will note, the other 18 odd questions I managed to do myself. I just wanted a bit of help as I was struggling to ascertain the calculation for the 2 answers provided. I also, was not able to find similar questions online, maybe I was looking in the wrong place or asking the wrong questions, who knows.

Casu

Why would you think you were looking in the wrong place?! You get to a certain level and are at least expected to have a go. You didn't, you just expected someone to give you the answers, where is the learning in that. Plus you were asked for the actual copy of the question, so why did you not add the picture of the questions as you were asked? Doesn't matter where you are, if you at a computer, or one phone, laptop or tablet then you can add a picture. I can only note, now, what you say about the other 18 questions because you have told us. Clearly you don't now need help, as you still haven't done either

Zoynal98

I haven't studied "Cash Management" but I found a related post which should help you out with your answer:

https://forums.aat.org.uk/discussion/443042/cash-management-task-8

You should get a Dividend Yield of 6.5% I think.

Hope this helps.

Kylie_Mounce

Ah that's amazing. Thank you Zoynal! I looked everywhere for a similar question to it or guidance. That has helped so much. Thank you!!!! Pretty obvious when you look at the answer