A 15% stock yields 10%. What is the market value of the stock?

Question: A 15% stock yields 10%. What is the market value of the stock?

Solution:
Given that,
A 15% stock gives an annual dividend of Tk. 15 on a face value of Tk. 100.

We know,
Yield% = (Annual dividend/Market value) × 100
∴ 10 = (15/Market value) × 100
⇒ Market value = (15 × 100)/10
⇒ Market value = Tk. 150

∴ the market value of the stock is Tk. 150.