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....

Answer Details

The nominal value of each share is ₦0.50. Authorized share capital is the maximum amount of share capital that a company is allowed to issue, while issued share capital is the actual amount of share capital that the company has offered to shareholders and has been accepted. In this case, the authorized share capital is 50 million and the company has split it into 100 million shares. However, only 80 million shares have been offered for subscription, and they have been fully subscribed on issue at a price of 60k per share. To calculate the nominal value of each share, we can divide the total amount of issued share capital (which is 80 million shares x 60k per share = 4.8 billion) by the total number of shares issued (which is 80 million shares). This gives us a nominal value of ₦0.06 per share. Therefore, the correct answer is option D: ₦0.50. Note that this is not the same as the issue price of the shares, which was 60k per share. The issue price is the price at which the shares were offered to shareholders and is usually higher than the nominal value.