Math, asked by ngthecaptain, 11 months ago

If the face value of both the shares is same, then which investment out of the
following is more profitable?
Company A : Dividend 16%, MV = 80,
Company B : Dividend 20%, MV = 120.​

Answers

Answered by Chirag2504
36

Step-by-step explanation:

Let the FV of each type of share be Rs. 100

Company A:Dividend 16%,MV Rs. 80

on investing Rs. 80 share, dividend is Rs. 16.

Rate of Return =Dividend / Investment into 100

=16/80*100=20%

Company B: Dividend 20%,MV Rs.120

= 20/120*100=16.67%

From the above solution, Company A is more profitable.

Answered by shindedropadi
3

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