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WAEC Commerce 2014 Theory — Question 25

Question 25 of 50 from the West African Examinations Council (WAEC) Commerce 2014 Theory paper, with the correct answer and a full explanation.

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Olumide bought shares in a company with: Authorised capital #500,000; Issued capital #450,000; Nominal value #1.00; Market Price #1.20. If the shares are offered to him at #1, the share is sold at

  • A. per value
  • B. a discount
  • C. face valueCorrect
  • D. a premium

Explanation

Since the offer price (#1) equals the nominal (par) value, the share is issued at face value.

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