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GCE Commerce 1990 Question 62

Question 62

Business Calculations

A company has recently advertised an issue of one million ordinary shares of 50 kobo at 65 kobo per share. When the issue is fully paid the company will collect

  1. A.N65,000.00
  2. B.N500,000.00
  3. C.N650,000.00
  4. D.N1,000,000.00
  5. E.N65,000,000.00
Show the answer and explanation

Answer: C (N650,000.00)

Explanation

The issue price is what is paid: 1,000,000 × 65k = 65,000,000k = N650,000.