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