Question

Mrs. Parekh invested an equal amount in
two companies by purchasing equity shares
with market price 145 and 160 each. At the
end of the year, both the companies declared
the dividend of 20% and 30% each. In which
company was her investment profitable?
​

Answer 1

Company with Market Price of Share Rs 160 was profitable

Step-by-step explanation:

Let say Amount invested  in each company  = A

number of shares of company 1=   A/145

Dividend   = 20

Amount received = 20 * A/145  = 0.138A

number of shares of company 2 =   A/160

Dividend   = 30

Amount received = 30 * A/160  = 0.1875A

0.1875 > 0.138

=>

Company with Market Price of Share Rs 160 was profitable

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