A company allotted 20,000 shares to the applicants of 50,000 shares after rejecting 10,000 applications. In which ratio the company allotted the share?
Answer & explanation
Correct answer: option 4
The correct answer is option 4- 2:1.
Share application received = 50,000
Rejected applications = 10,000
Remaining applications = 50,000 - 10,000
= 40,000
Allotted shares = 20,000
Ratio of Allotment of shares = 40,000 : 20,000
= 2:1