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WAEC Commerce 2012 Paper

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Question : 31

Total: 48

A Ltd. Company has an authorized capital of 2,000,000 shares of D5 each. If the company issued 1,200,000 shares, its issued capital is

D 10,0000,000
D6,000,000
D4,000,000
D2,000,000

Solution:

Concept:

Issued capital is the total nominal value of shares actually issued to shareholders.

Explanation:

The company issued

1,200,000

shares.

Each share has a nominal value of

D5

.

Issued capital is calculated as:

\text{Issued capital} = \text{Number of shares issued} \times \text{Nominal value per share}

= 1,200,000 \times 5

= D6,000,000

Answer:

B.

D6,000,000

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