passwella.
Menu

WAEC Commerce 2014 Question 26

Question 26

Business Calculations

Use the following information: Olumide bought shares in a company with the following information: Authorized capital ₦500,000; Issued capital ₦450,000; Nominal value ₦1.00; Market price ₦1.20.
Calculate the number of unissued shares of the company.

  1. A.950,000 shares.
  2. B.500,000 shares.
  3. C.450,000 shares.
  4. D.50,000 shares.
Show the answer and explanation

Answer: D (50,000 shares.)

Explanation

At ₦1 each: authorised 500,000 shares − issued 450,000 shares = 50,000 unissued shares.