Two companies have shares of 7% at Rs.116 and 9% at Rs.145 respectively. In which of the shares would the investment be more
profitable.
Dear student,
Let the investment in each case = Rs 116∗145
Let the investment in each case = Rs 116∗145
Dividend in the first case = (116×145×7)/116 = Rs 1,015.
Dividend in second case = (116×145×9)/145 = Rs 1,044.
From the above it is clear that the second type of share that is 9% at Rs 145 are more profitable.
Regards
Regards