Use the following information to answer the question
Bamidele co. ltd has authorized capital of 40,000,000, ordinary shares of N4 each. shares issued and fully paid are 25,000,000
A. N160,000,000
B. N100,000,000
C. N65,000,000
D. N40,000,000
Correct Answer: Option A
A. N160,000,000
Explanation
Authorized share capital is the maximum amount of equity capital that a company can issue to the shareholders.
Authorized share = Issue Price per Share *number of authorized Shares.
40,000,000 * 4 = 160,000,000
