GENERAL KNOWLEDGE

GK

ACCOUNTING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Given, Ke = (DPS / MP) X 100, may be used in
A
calculating capital structure
B
calculating cost of equity capital
C
calculating dividend yield on equity share
D
all of the above
Explanation: 

Detailed explanation-1: -Cost of Equity is the rate of return a company pays out to equity investors. A firm uses cost of equity to assess the relative attractiveness of investments, including both internal projects and external acquisition opportunities.

Detailed explanation-2: -Answer: (C) by dividing the fixed dividend per share by the price per preference share.

There is 1 question to complete.