Mr. Das invests in ₹ 100, 12% shares of Company А available at ₹ 60 each. Mr. Singh invests in ₹ 50, 16% shares of Company B available at ₹ 40 each. Use this information to state which of the following statements is true?

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KollegeApply · Accepted Answer

Both Mr. Das and Mr. Singh have the same rate of return of 20% Explanation: Rate of return (yield) = (dividend per share $\div$ market value per share) $\times$ 100. Mr. Das: Dividend = 12% of ₹ 100 = ₹ 12 Yield = (12 $\div$ 60) $\times$ 100 = 20% Mr. Singh: Dividend = 16% of ₹ 50 = ₹ 8 Yield = (8 $\div$ 40) $\times$ 100 = 20%

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