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If the face value of both the shares is same, then which investment out of the following is more profitable?

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If the face value of both the shares is same, then which investment out of the following is more profitable?

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Let the face value of share be Rs. x. 

For company A: 

MV = Rs.  80, Dividend = 16% 

Dividend = 16% of FV

∴ Rate of return of company A is more. 

∴ Investment in company A is profitable.

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