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WAEC Commerce 2009 Question 32

Question 32

Stock Exchange

The nominal value of KC Ltd's share is 50k and the market value is 70k. This means that the company's shares are selling

  1. A.at par
  2. B.ex dividend
  3. C.cum dividend
  4. D.at premium
Show the answer and explanation

Answer: D (at premium)

Explanation

The market value is above the nominal value, so the shares sell at a premium.