Shares of FV Rs. 10 of two companies are available as follows.
Company A MV Rs. 25, rate of dividend 24%
Company B MV Rs. 20, rate of dividend 18%
State with reason, which shares you will prefer to purchase ?
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Answer:
a) M.V of shear is ₹ 25
but face value of share is ₹10
dividend on face value is 24 %
so dividend price be ₹2.4
b) M.V of shear is ₹ 20
but face value of share is ₹10
dividend on face value is 18%
so dividend price be ₹1.8
in company A giving more dividend more than B
invest in A company is perfect
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