Question 17
Business CalculationsUse the information below to answer questions 17 and 18.
Maimani Plc, whose nominal capital is made up of 5,000,000 ordinary shares of 50k each, decided to offer 80% of it to the public and realized only 50% of the amount due.
What is the company's authorized share capital?
- A.₦4,000,000
- B.₦2,500,000
- C.₦5,000,000
- D.₦7,500,000
Show the answer and explanation
Answer: B (₦2,500,000)
Explanation
Authorised capital = 5,000,000 shares × 50k = ₦2,500,000.