If a 6% stock is providing an 8% yield, what is the current market price of the stock?

Stocks and Shares Mcqs for PPSC, FPSC, NTS, and Pakistan government job tests. Select an option below, then read the explanation.

Stocks and Shares Mcqs calculations for Mathematics Preparation with detailed explanation.

PPSCFPSCNTSPakistan govt jobs
Subject
Stocks and Shares Mcqsmathematics-mcqs › stocks-and-shares-mcqs
Published
7 Oct 2019
Last updated
28 May 2026

Browse all Stocks and Shares Mcqs

Choose the correct answer

Explanation

The stock pays Rs. 6 as dividend on a face value of Rs. 100. Since the yield is 8%, the market price is calculated as (Dividend / Yield) × 100 = (6 / 8) × 100 = Rs. 75. Therefore, the market value of the stock is Rs. 75.

PakQuizHub — free MCQs and past papers for Pakistan government job tests. Content is for educational practice only.