Partridge Ltd provides the following information for the year 2017:
$$\begin{array} { | l | l | }
\hline \text { Net profit } & \$ 34,000 \
\hline \text { Market price per share of ordinary shares } & \$ 17 / \text { share } \
\hline \text { Dividends paid } & \$ 0.75 / \text { share } \
\hline \text { Ordinary shares outstanding at 1 Jan 2016 } & 130,000 \text { shares } \
\hline \text { Ordinary shares outstanding at 31 Dec 2017 } & 150,000 \text { shares } \
\hline
\end{array}$$
The company has no preference shares outstanding.Calculate the dividend yield for ordinary shares.

Question

Partridge Ltd provides the following information for the year 2017:
$$\begin{array} { | l | l | } 
\hline \text { Net profit } & \$ 34,000 \
\hline \text { Market price per share of ordinary shares } & \$ 17 / \text { share } \
\hline \text { Dividends paid } & \$ 0.75 / \text { share } \
\hline \text { Ordinary shares outstanding at 1 Jan 2016 } & 130,000 \text { shares } \
\hline \text { Ordinary shares outstanding at 31 Dec 2017 } & 150,000 \text { shares } \
\hline
\end{array}$$
The company has no preference shares outstanding.Calculate the dividend yield for ordinary shares.

Quizplus · Accepted Answer

Dividend yield for ordinary shares is calculated by dividing the dividend per share by the market price per share and then multiplying by 100. However, we are not given the dividend per share in this question. Therefore, we cannot calculate the dividend yield. This question is incomplete and cannot be answered.

Partridge Ltd Provides the Following Information for the Year 2017