| Earnings per share 47k |
| Dividends per share 30k |
| Per value of each share N1.20 |
| market price per share NM1.50 |
A. N20.00%
B. N25.00%
C. N31.33%
D. N39.17%
Correct Answer:
Option C – N31.33%
Explanation
The earnings yield refers to the earnings per share for the most recent 12-month period divided by the current market price per share. The earnings yield (which is the inverse of the P/E ratio) shows the percentage of each dollar invested in the stock that was earned by the company.
EPS ÷ Market price
47/1.50 = N31.33
