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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › How to calculate dividend paid using dividend yield and share price?
In KEYSTONE CO. question,
In the TB, there’s a credit balance
Equity shares of 20 cents each 50,000,000
In the adjustment we’re supposed to calculate the dividend paid, using the dividend yield of 4% and a price per share at that date of 2.4$.
In the answer page is 24,000,000. Please explain the calculation
Hi,
The formula for the dividend yield is the dividend per share divided by the share price. Here you are given the yield and the share price, so can rearrange the formula to calculate the dividend per share. Once you have the dividend per share you can use the number of shares in issue to calculate the total dividend.
Have a go and see how you get on.
Thanks