n NISM Certifications
XV NISM Series XV
Medium

Company paid 25% dividend on face value ₹5, market price ₹70, payout ratio 80%. Calculate Earnings Yield.

Practice question from NISM XV Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. 2.23%

    Correct answer

  2. B

    8%

  3. C

    4.63%

  4. D

    5%

Why this is the answer

Dividend = 25% of 5 = 1.25. EPS = Dividend ÷ Payout = 1.25 ÷ 0.8 = 1.5625. Earnings Yield = EPS ÷ Price × 100 = 1.5625 ÷ 70 × 100 ≈ 2.23%.

Test yourself for real

Take a full NISM Series XV mock test.

Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.