question 3

The authorised share capital consists of 200 000 ordinary shares. The founders of the company subscribed and paid for 10 000 ordinary shares. The remaining authorised share capital was off the public for subscription. Applications had been received for 200 000 ordinary shares You are required to determine the following: Select one: a. Number of issued ordinary share capital b. Under-subscription of shares preference shares c. Number of issued ordinary share capital d. Over-subscription of shares ordinary shares Question Completion Status: ABC (Pty) Ltd has 300 000 ordinary shares @ no par value in issue at an amount of R525 000 The directors decide to acquire 50 000 of its own shares @ R2,60 per share. Required: What is the amount of the ordinary share capital after the share buy-back? Select one: O a. R475 000 O b. R395 000 O c. R416 250 d. R250 000 O e. R612 500