Question

How much more profit can be earned by selling one share of NTPC over one share of Tata?

• A. 30%
• B. 50%
• C. 200%
• D. None of these

Answer 1

The correct option is C 200%

Let the total number of shares for the month of August 2007 be x and the total profit earned in that month be Rs. Y.

The profit earned by selling one share of NTPC = $\frac{15y}{10x}$ = Rs. $\frac{3y}{2x}$

The profit earned by selling one share of Tata = $\frac{4y}{8x}$ = Rs. $\frac{y}{2x}$

The required percentage = $\frac{\frac{3y}{2x}-\frac{y}{2x}}{\frac{y}{2x}}$ = 200%

Hence option (d).

Alternately:

NTPC:profit/Share=$\frac{15}{10}$

Tata: Profit/Share=$\frac{4}{8}$

% increase in profit= $\frac{(1.5-0.5)}{0.5}$ = 200%