which is the better investment 16% rupee's 100 shares ar rupee 80 or 20% rupee's 100 shares at 120
Answers
Answered by
2
Answer:
1st case16% Rs.100 shares at 80 means;Market value of 1 share = Rs. 80Nominal value of 1 share = Rs. 100Dividend = 16%Income on Rs. 80 = 16% of Rs. 100 = Rs. 16Income on Rs. 1 = 16/80=Rs.0.202nd case20% Rs. 100 shares at 120 means;Market value of 1 share = Rs. 120Nominal value of 1 share = Rs. 100Dividend = 20%Income on Rs. 120 = 20% of Rs. 100 = Rs. 20Income on Rs. 1 = 20/120=Rs.0.17Then 16% Rs. 100 shares at 80 is better investment.
Related Answer
Similar questions