Which is a better investment: "15 %, ₹ 220 shares at ₹ 240 of Company A' or ' 18 %, ₹ 200 shares at ₹ 240 of Company B'?

Question

Which is a better investment: "15 %, ₹ 220 shares at ₹ 240 of Company A' or ' 18 %, ₹ 200 shares at ₹ 240 of Company B'? (A) Company A (B) Company B (C) Both (a) and (b) (D) Cannot say

Tardigrade Admin · Accepted Answer

(i) Find the dividends of the two companies.
(ii) Find the rate of return in two cases by using the following formula.

F V \times R

ate of dividend

= M V \times

Rate of return
(iii) The one with greater rate of return is better.

Q. Which is a better investment: " $15%, ₹ 220$ shares at $₹240$ of Company A' or ' $18%$ , ₹ 200 shares at ₹ 240 of Company B'?

Company $A$

Company B

Both (a) and (b)

Cannot say

(i) Find the dividends of the two companies.
(ii) Find the rate of return in two cases by using the following formula.
$F V \times R$ ate of dividend $= M V \times$ Rate of return
(iii) The one with greater rate of return is better.

Q. Which is a better investment: "15%,₹220 shares at ₹240 of Company A' or ' 18%, ₹ 200 shares at ₹ 240 of Company B'?

Company A