A company with registered capital (1,00,000 Equity Shares of ₹50 each) was incorporated. What will be the amount of underwriting commission if Underwriting Commission was payable @ 5% of Nominal (Face) Value of Shares, by issue of 60,000 Equity Shares at par?
Answer & explanation
Correct answer: option 3
The correct answer is option 3- ₹1,50,000.
Underwriting commission = 50 X 5/100
= ₹2.5
Amount of Underwriting commission = 60,000 X 2.5
= ₹1,50,000