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
Correct Answer: 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
