Question

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?

Answer 1

Let the investment in each case = Rs. 116 x 145
Dividend in first case
∴ Dividend in first case

= `"Rs".(116 xx 145 xx 7)/(116)` = Rs. 1015
ans dividend in second case

= `"Rs".(116 xx 145 xx 9)/(145)` = Rs. 1044
From the above it is clear that the second type of share i.e. 9% at Rs. 145 are more profitable.