Find market value of an 8.5% stock, in which an income of Rs. 750 is derived by investing Rs.12000, with 1/4% brokerage?

Question

What is the market value of a 8.5% stock, in which an income of Rs. 341 derived by investing Rs. 3900, brokerage being 3/4%?

Answer 1

Assume that face value = Rs.100
Dividend per share = Rs.8.5 (as it is 8.5% stock)
By investing Rs.12000, earnings = Rs.750
To get an earning of Rs.8.5, investment required = (12000*8.5)/750 = Rs.136
market value of Rs. 100 stock = Rs.(136- 1/4) = Rs.135.25