Saved Bookmarks
| 1. |
Which is better investment: Rs.300 shares at Rs.320 thay pays a dividend of `10%`, or Rs.200 shares at Rs.215 that pays a dividend of `10%`? |
|
Answer» Let the investment made in each case be Rs.`(320xx215)` Case 1 : Rs.300 shares at Rs.320 paying a dividend of `10%` Annual income from each share `=10%` of `300=(10)/(100)xx300="Rs."30` `"Number of shares bought"=("Total investment")/("Market value of each share")=(320xx215)/(320)=215` `rArr "Annual income from 215 shares "= Rs.(215xx30)=`Rs.6450. Case 2 : Rs.200 shares at Rs.215 paying a dividend of `10%` `"Annual inocme from each share"=10%" of 200"=(10)/(100)xx200="Rs."20` `"Number of shares bought"=("Total investment")/("Market value of each share")=(320xx215)/(215)=320` `therefore" Annual income from 320 shares "="Rs."(320xx20)=6400.` So, it can observed that the same abount of investment is made in each case, but the income is more in the first case. `therefore10%, "Rs.300 shares at Rs.320 is better investment."` |
|