n NISM Certifications
XV NISM Series XV
Medium

Calculate the Earnings Yield of a company with market capitalization Rs. 15 lakhs and net profit Rs. 3 lakhs.

Practice question from NISM XV Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    10%

  2. 20%

    Correct answer

  3. C

    50%

  4. D

    100%

Why this is the answer

Earnings Yield = (Net Profit ÷ Market Capitalization) × 100 = (3,00,000 ÷ 15,00,000) × 100 = 20%.

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