In which of the cost of the following method of equity capital is computed by dividing the dividend ...........

Principles of Accounting & Financial Management Cost of capital

In which of the cost of the following method of equity capital is computed by dividing the dividend by market price per share or net proceeds per share?

Price Earning Method

Adjusted Price Method

Adjusted Dividend Method

Dividend Yield Method

छोटे Courses बड़े Results

Master Cost of capital

Prepare through Micro-courses

Try Now

Explanation:

Answer:
(D) Dividend Yield Method\

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.