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