Mammy Plc, whose nominal capital is made up of 5,000,000 ordinary shares at 50K each, decide to offer 80% of it to the public and realized only 50% of the amount due.
A. N4,000,000
B. N5,000,000
C. N7,500,000
D. N2,500,000
Correct Answer:
Option D – N2,500,000
Explanation
From the calculation made we arrived at the answer and using the formula.
Nominal capital is the same as authorized x capital
The price per share is 50K
∴ Authorized share capital
=N5000000 x 0.50K
= N2,500,000
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