Answer: Investment in Company A is more profitable
Take the same face value, say ₹ 100, for both.
Company A: dividend per share = ₹ 16 on an investment of ₹ 80.
\[ \text{Return} = \frac{16}{80} \times 100 = 20\% \]
Company B: dividend per share = ₹ 20 on an investment of ₹ 120.
\[ \text{Return} = \frac{20}{120} \times 100 \approx 16.67\% \]
Since 20% > 16.67%, Company A gives a better rate of return. (The comparison does not depend on the face value chosen, as long as it is the same for both.)