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Question
How much more profit can be earned by selling one share of NTPC over one share of Tata?
Options:
A .  20%
B .  30%
C .  50%
D .  200%
E .  None of these
Answer: Option D
:
D
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 = 15y/10x = Rs. 3y/2x
The profit earned by selling one share of Tata = 4y/8x = Rs. y/2x
The required percentage = How Much More Profit Can Be Earned By Selling One Share Of N...
Hence option (d).
Alternately:
NTPC:profit/Share=15/10
Tata: Profit/Share=4/8
% increase in profit= (1.5 - 0.5)/0.5 = 200%

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