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