Q. 64.2( 33 Votes )

If the face value

Answer :

Let FV = Rs. 100


Company A:


We know that dividend per share =


Dividend per share =


= Rs. 16


Income on Rs. 1 = = Rs. 0.20


Company B:


We know that dividend per share =


Dividend per share =


= Rs. 20


Income on Rs. 1 = = Rs. 0.16


Investment of company A is more profitable than company B.


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