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?
- N4,000,000
- N5,000,000
- N7,500,000
-
N2,500,000
The correct answer is: D
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