The market value of a 10.5% stock, in which an income of Rs. 756 is derived by investing Rs. 9000, brokerage being 1/4%, is:
Choose the correct answer:
A) 113.2  B) 114  C) 114.75  D) 124  E) 124.75
Face Value = Rs. 9000.   Dividend = 10.5%.   Annual Income = Rs. 756.   Brokerage per Rs. 100 = Rs. 0.25.   Dividend is always paid on the face value of a share.   Face Value * Dividend / (Market Value + Brokerage per Rs. 100) = Annual income.   = 9000 * 10.5 / 756 = Market Value of Rs. 100 stock + Brokerage per Rs. 100.   = Market Value of Rs. 100 stock + Brokerage per Rs. 100 = Rs. 125.   = Market Value of Rs. 100 stock = Rs. 125 - Re. 0.25.   = Market Value of Rs. 100 stock = Rs. 124.75.   answer : 124.75
<result>E</result>
The market value of a 10.5% stock, in which an income of Rs. 756 is derived by investing Rs. 9000, brokerage being 1/4%, is: