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Which is better investment : 6% Rs. 100 shares at Rs. 120 or 8% Rs. 10 shares at Rs. 15. |
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Answer» Let the investment in each case = Rs. 120 In the first case, Dividend on Rs. 120 = Rs. 6 In second case, Dividend on Rs. 10 = 8 × 10/100 = 0.8 Now dividend on Rs. 15 = 0.8 then dividend on Rs. 120 = (0.8 × 120)/15 = Rs. 6.4 It is clear that, second investment i.e. 8% Rs.10 shares at 15 is more profitable. |
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