By investing Rs. 1800 in 9% stock, Syam earns Rs. 120. The stock is then quoted at
Rs.135
Rs. 96
Rs. 85
Rs. 122
Explanation:
Assume that face value = Rs.100.
Dividend per share = Rs.9 [as it is a 9% stock]
By investing Rs. 1800, he earns Rs.120
Investment needed to earn Rs.9 = $\dfrac{1800 \times 9}{120} $= Rs.135%
ie, stock is then quoted [then market value] = Rs.135