Question

Illustration 6 :
Pooja wants to invest some amount in company A or company B by
purchasing equity shares of face value 10 each, with market price of
220 and 190 respectively. The companies are expected to declare dividends
at 25% and 15% respectively. In which company is it profitable to invest
her money? Why?​

Answer 1

Answer:

Company A is more profitable because the profit she gets will be 2.5 in A and 1.5 in B

Step-by-step explanation:

multiply. 10×25% and 10×15%

then compare both the numbers