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Which is a better ivestment: '150%, Rs. ...

Which is a better ivestment: '150%, Rs. 220 shares at Rs. 240 of Company A' or '18%, Rs. 200 shares at Rs. 240 of Company B' ?

A

Company A

B

Company B

C

Both (a) and (b)

D

Cannot say

Text Solution

Verified by Experts

The correct Answer is:
B
(i) Find the dividends of the two companies.
(ii) Find the rate of return in two cases by using the following formula.
`FVxx` Rate of dividend `=MVxx` Rate of return.
(iii) The one with greater rate return is better.
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