A limited liability company has an authorized share capital of N50 million split into 100 million shares 80 million share was offered for subscription at 60k per share payable in full on application. These have been fully subscribed and issued
What is the nominal value of each share?

dhevid216

9 years ago

To Get the nominal amount per share you have to divide the Authourised Capital i.e the Real Amount of money by The total amount of shares that the company wants to issue out.Giving us this simple equation

Nominal Amount Per Share=Authourize capital/No of shares

No of Shares= Authorize Capital x Nominal Amount of Shares Quoted.

Thanks

ijeoma.u

1 year ago

The nominal value of each share is N0.50.

- Nominal value or face value of a share refers to the stated value of each share as specified in the Memorandum of Association of a company. It is also called par value or legal value.
- In this case, the authorized share capital of the limited liability company is N50 million, split into 100 million shares. This means that the nominal value of each share would be N50 million divided by 100 million shares, which is N0.50.
- The company has offered 80 million shares for subscription at 60k per share, payable in full on application. This means that investors have to pay N0.60 per share to subscribe for the shares, but the nominal value of each share is N0.50.
- The amount paid by investors that is above the nominal value of each share is called the share premium, and it is recorded in the company's financial statements as part of the shareholders' equity.
- Therefore, in this case, the nominal value of each share is N0.50.

Iqraman

8 years ago

no the nominal value is d same as the share price or face value of the share from the above question the ans is 0.60 [60k/100=0.60]