1. (a) Explain the difference between an offer for sale of ordinary shares at a fixed price and an offer for sale of ordinary shares by subscription. marks] [2 Another method of issuing ordinary shares is to offer them for sale by tender. A company is proposing to sell 30m shares with nominal value 50p each by this method and has received offers as follows Price Offered Shares Requested Number of Investo 60p 70p 80p 90p 1.00 1.10 1.20 5,000,000 9,000,000 18,000,000 11,500,000 3,000,000 500,000 800,000 8,000 5,000 7,000 4,000 600 300 100 (b) Define strike price and determine the maximum it could be for this sale of shares. [3 marks] (c) Calculate the average number of shares each successful investor will receive assuming a pro rata allocation. 1 markl