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What will be the number of shares to be issued to a subscriber who applied for 5...


Question

What will be the number of shares to be issued to a subscriber who applied for 50,000 units.

Options

A) 20,000

B) 18,000

C) 15,000

D) 12,000

The correct answer is A.

Explanation:

Allotment = 500,000 = 0.4 or 40%

∴ Each subscriber would get 40% shares of what they applied for.

∴ 50,000 x 0.4 = 20,000 units


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