The correct answer is: 625c.
Step 1 - Calculate the dividend amount using dividend cover.
Dividend cover = EPS / Dividend per share
2.5 = 50 / Dividend per share
Dividend per share = 50 / 2.5 = 20c per share.
Step 2 - Calculate the market price of share using dividend yield.
Dividend yield = Dividend per share / Market price per share
0.032 = 20 / MPS
MPS = 20 / 0.032 = 625c per share
