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Use the information below to answer this question.
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Use the information below to answer this question.

Mammy Plc, whose nominal capital is made up of 5,000,000 ordinary shares at 50K each, decide to offer 80% of it to the public and realized only 50% of the amount due.

what is the company authorized share authorized share capital?

A.

N4,000,000

B.

N5,000,000

C.

N7,500,000

D.

N2,500,000

Correct answer is D

From the calculation made we arrived at the answer and using the formula.

Nominal capital is the same as authorized x capital

The price per share is 50K

∴ Authorized share capital

=N5000000 x 0.50K

= N2,500,000