Mathematics
Which is the better investment:
10%, ₹ 100 shares at ₹ 120 or 8%, ₹ 100 shares at ₹ 72?
Shares & Dividends
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Answer
Since,
Profit% on M.V. = Dividend% on N.V.
In first case,
P% on ₹ 120 = 10% on ₹ 100
In second case,
P% on ₹ 72 = 8% on ₹ 100
Hence, 8% ₹ 100 shares at ₹ 72 is the better investment.
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