Given:
N6 000 10% preference shares of N0.50 each
N6 000 ordinary shares of N1 each
Capital reserves N2 700 000
Long-term liabilities N4 000 000
Find the value of authorized share capital?
-
A.
13 000 000 -
B.
12 000 000 -
C.
9 000 000 -
D.
15 700 000
Correct Answer: Option C
Explanation
6000 x 0.50 = 3000
6000 x 1 = 6000
3000 + 6000 = 9000