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The Following Information Is Available for Companies A,B,C and D

Question 2

Multiple Choice

The following information is available for companies A,B,C and D:
 A  B  C  D  Number of ordinary shares 1,000,0001,250,000750,000500,000 Current share price £2.50£3.00£1.50£1.75 Total profits after tax £200,000£225,000£150,000£250,000 Total ordinary dividends 100,000100,00050,00040,000\begin{array} { l c r r r } & \text { A } & { \text { B } } & \text { C } & { \text { D } } \\\text { Number of ordinary shares } & 1,000,000 & 1,250,000 & 750,000 & 500,000 \\\text { Current share price } & £ 2.50 & £ 3.00 & £ 1.50 & £ 1.75 \\\text { Total profits after tax } & £ 200,000 & £ 225,000 & £ 150,000 & £ 250,000 \\\text { Total ordinary dividends } & 100,000 & 100,000 & 50,000 & 40,000\end{array}

If you are interested in obtaining a regular income from your investment,which company would you invest in?


A) A
B) B
C) C
D) D

Correct Answer:

verifed

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