Suresh invests some amount in the following
companies.
Company A: FV 100, MV 120, dividend
declared 12%
Company B : FV 100, MV 90, dividend
declared 8.1%
In which company is the investment better?
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For company A,
Dividend amount=12%of fv
=12/100×100
=12 rupees
For company B,
Dividend amount=8.5% of fv
= 8.5/100×100
=8.5 rupees
In Company A investment is better
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