Commerce WAEC

The value of Bamidele authorized share capital is?

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

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