A 10.5% stock gives an income of Rs. 756 from an outlay of Rs. 9000; brokerage is 1/4%. What is the market value per Rs. 100 stock?

Given data

• Dividend rate = 10.5% on face value Rs. 100 ⇒ income per Rs. 100 stock = Rs. 10.50.
• Total cash paid (including brokerage) = Rs. 9000.
• Brokerage = 0.25% on the purchase amount.

Concept / Approach

• Let N be the number of Rs. 100 stocks; then income = 10.5 × N = 756 ⇒ find N.
• If x is the market price per Rs. 100 (before brokerage), total outlay = N × x × (1 + 0.0025).

Step-by-step calculation
10.5N = 756 ⇒ N = 756 / 10.5 = 72 (hundreds of stock)N × x × 1.0025 = 9000 ⇒ x = 9000 / (72 × 1.0025)x = 9000 / 72.18 ≈ 124.688… ⇒ 124.69 (to 2 decimals)

Verification
Cost before brokerage ≈ 72 × 124.688 = 8977.5; adding 0.25% ⇒ 8977.5 × 1.0025 ≈ 9000 (matches).

Common pitfalls

• Ignoring brokerage or applying it to face value instead of the purchase amount.

Final Answer
Rs. 124.69