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
Question 1 Report
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
Answer Details
The issued capital of a company is the total amount of money that has been raised by issuing shares to shareholders. In this case, A Ltd. Company has an authorized capital of 2,000,000 shares of D5 each, which means that it can potentially raise up to D10,000,000 in total capital. However, if the company has only issued 1,200,000 shares, its issued capital would be D6,000,000 (1,200,000 shares x D5 per share). Therefore, "D6,000,000" is the correct answer.
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