Question

shares of FV Rs. 10 of two companies are available as follows

Answer 1

Let's investment for both =x

For company A

So,no of shares =investment /Mv on one share.

=x/25

Divident=no. of shares ×divi%/100×FV

Divident=x/25×24/100×10

Divident =12x/125

For company B....

So,no of shares =investment /Mv on one share.

=x/20

Divident=no. of shares ×divi%/100×FV

Divident=x/20×18/100×10

Divident =9x/100

...

So, if divident might be, 1500Rs. for example..

For company A,

Divident =12×1500/125

Divident =Rs. 240

For company B,

Divident =9×1500/100

Divident =Rs. 135


So, since company A gives more divident we would have purchased the shares of company A.


Hope it helps (｡’▽’｡)♡