n NISM Certifications
XV NISM Series XV
Medium

Market price = Rs 42, PE = 14, dividend payout = 50%. Dividend per share = ?

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

Options

  1. A

    Rs. 3

  2. B

    Rs. 2.5

  3. C

    Rs. 4

  4. Rs. 1.5

    Correct answer

Why this is the answer

EPS = Price ÷ PE = 42 ÷ 14 = 3. Dividend = EPS × Payout = 3 × 50% = Rs. 1.5.

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