this question has been taken from i the book -ML aggarwal( avichal publication)class 10th , chapter3, shares and dividends ……..it’s very important question and conceptual question
we have been in question that two companies have shares of 7% at Rs116 and 9% at Rs 145 respectively.
so how will we find out In which of the shares the investment would be more profitable ?
please explain it in easier way.
Q no. 22, exercise 3, ML Publication, share and dividends
Let the investment in each case = Rs 116∗145
Dividend in the first case = (165∗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.