 Hello and welcome to the session. In this session we are going to discuss the following question and the question says that which is a better investment? 12% stock at $120 or 8% stock at $90. Let us start with the solution. Now, 12% stock $120 means market value of one share is $120. Its nominal value or face value is $100. And the dividend paid is 12%. Similarly, 8% stock $90 means market value of one share is $90. Its nominal value or face value is $100. The dividend paid is 8%. So in the first case, income on $120 is 12% of $100 which is equal to $12 upon 100 into 100 which is equal to $12. Therefore, income on $100 is equal to 12 upon 120 into 100 which is equal to $10. And now in the second case income on $90 is equal to 8% of $100 which is equal to 8 upon 100 into 100 which is equal to $8. Therefore, income on $100 will be equal to 8 upon 90 into 100 which is equal to $80 upon 9. That is equal to $8.88. So as by the first investment, the income on $100 is $10 and by the second investment, the income on $100 is $8.88. Hence, the first investment is better. This completes our session. Hope you enjoyed the session.