Question

5. Market value of shares and dividend declared by the two
companies is given. Face value is same and it is 100.
Investment in which company is more profitable?
(i) Company A - * 136, 14%
(ii) Company B - 3 144, 15%​

Answer 1

Answer:

Company B

Step-by-step explanation:

(i)

Company A= 100*136×14%=1904

(ii)

Company B= 100-3*144×15%=2905.2

As, 2095.2 is greater than 1904, So Company B's investment is more profitable.

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