If applicants of 80000 shares were allotted 60,000 shares on Pro Rata basis, the shareholders who have alotted 1200 shares must be applied for:
900 shares
3600 shares
1600 share
4800 share
Answers
Answer:c) 1600
Explanation: applied 80000
Alloted 60000
So, 80000*1200/60000=1600
Given:
If applicants of 80000 shares were allotted 60,000 shares on a Pro-Rata basis
To Find:
the shareholders who have allotted 1200 shares must be applied for:
900 shares
3600 shares
1600 share
4800 share
Solution:
The concept of a Pro-Rata allotment arises when the issue of shares is oversubscribed, in such a case the company either rejects applications to the extent of shares oversubscribed or they allot shares on a Pro-Rata basis. It means few numbers of shares shall be allotted to the applicants in the proportion to the number of shares applied by them. In the given question the applicants of 80000 shares were allotted 60000 shares on a Pro-Rata basis, which means the application of one share was allotted 80000/60000 shares which is 4/3 shares. So the applicants of 1200 shares must have applied for 1200*4/3=1600 shares
Hence, the correct option is (c).