Accounting 9706 · AS & A Level · The accounting system

The accounting system — practice question

A company has ordinary share capital of $250000$. Each ordinary share has a nominal value of $0.25$. The rights issue is offered on the basis of 2 shares for every 5 shares held, at a premium of $0.15$. What total amount of capital is raised by the rights issue?

  • A$15000
  • B$40000
  • C$60000
  • D$160000

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