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Question

A company cannot issue shares at a discount more than ________ % of its face value.

A
5
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B
10
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C
15
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D
20
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Solution

The correct option is A 10
When Shares are issued at a price lower than their face value, they are said to have been issued at a discount.

Shares can be issued at discount subject to the following conditions:

(a) The shares must belong to a class already issued.

(b) Discount rate should not be more than 10% of its face value.


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