Question on: JAMB Commerce - 2015
Use the information below to answer this question.
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.
what is the company authorized share authorized share capital?
A
N4,000,000
B
N5,000,000
C
N7,500,000
D
N2,500,000
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Correct Option: D
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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