Use the information below to answer this question.

A limited liability company has an authorized shares capital of 50 million split into 100 millions shares. 80million shares are offered for subscriptions at 60k per share in full on application. These have been fully subscribed on issue

What is the nominal value of each share

Mbrain

9 years ago

The correct answer is D. this simply means that the registered share capital is 100 000 000 at 0.50 each. This means the amount the company is intending to receive from the public if #50 000 000 through subscription. But out of 100million authorized share capital..... 80 million was issued to the public at 0.60 each making a premium of 0.60-0.50 which is 0.10