What will be the number of shares to be issued to a subscriber who applied for 50,000 units.
-
A.
20,000 -
B.
18,000 -
C.
15,000 -
D.
12,000
Correct Answer: Option A
Explanation
Allotment = 500,000 = 0.4 or 40%
∴ Each subscriber would get 40% shares of what they applied for.
∴ 50,000 x 0.4 = 20,000 units