A public company has 2 000 000 ordinary shares of 50k each and offers 50% for subscription at N2 per share. If the shares were fully subscribed, calculate t...

A public company has 2 000 000 ordinary shares of 50k each and offers 50% for subscription at N2 per share.

If the shares were fully subscribed, calculate the issued capital?

Answer Details

The issued capital of a company refers to the total amount of share capital that has been issued and allotted to shareholders. In this case, the company has 2,000,000 ordinary shares with a face value of 50k each. If 50% of these shares are offered for subscription at N2 per share, it means that 1,000,000 shares are being offered at that price. So, if all the shares are fully subscribed, the company would receive N2 per share for 1,000,000 shares, which would amount to: N2 x 1,000,000 = N2,000,000 Therefore, the issued capital of the company would be N2,000,000 if all the shares were fully subscribed. So, the answer to the question is N2,000,000.