Which of the following methods involves computing the cost of capital by dividing the dividend by ma...........

Principles of Accounting & Financial Management Cost of capital

Which of the following methods involves computing the cost of capital by dividing the dividend by market price/net proceeds per share?

Adjusted price method

Price earning method

Dividend yield method

Adjusted dividend method

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Explanation:

Dividend yield measures the quantum of earnings by way of total dividends that investors make by investing in that company. It is normally expressed as a percentage. The formula for computing the dividend yield is Dividend Yield = Cash Dividend per share / Market Price per share * 100.