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WAEC Commerce 2015 Question 11

Question 11

Business Calculations

Use the following information: Bamidele Co. Ltd has authorized capital of 40,000,000 ordinary shares of ₦4 each. Shares issued and fully paid are 25,000,000.
The value of Bamidele Co. Ltd's authorized share capital is

  1. A.₦160,000,000.
  2. B.₦100,000,000.
  3. C.₦65,000,000.
  4. D.₦40,000,000.
Show the answer and explanation

Answer: A (₦160,000,000.)

Explanation

Authorised capital = 40,000,000 × ₦4 = ₦160,000,000.