Given below are two statements, one is labelled as Assertion A and the other is labelled as Reason R

Assertion A: Two companies with the same general earning power and same general position in an industry, the one paying larger dividend will almost always sell at a higher price

Reason R: The discounted value of near dividends is higher than the present worth of distant dividends

In light of the above statements, choose the most appropriate answer from the options given below

1
Both A and are correct and R is the correct explanation of A
2
Both A and are correct but R is NOT the correct explanation of A
3
A is correct but R is not correct
4
A is not correct but R is correct
5
None of the above

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