Question

M Ltd. issued shares at a face value of
Rs. 100 with a premium of Rs. 20 per
share. The underwriting commission
will be calculated on

O Rs. 80
O Rs. 120
O Rs. 100
O Rs. 90​

Answer 1

Explanation:

120 is right answer plz make me brainlist

Answer 2

Answer:

Rs 120 is the correct answer.

Explanation:

The underwriting commission will be Rs. 100 + 20 = Rs 120.

An underwriting is a contract with or without terms to be signed

Securities of a company when existing shareholders of the company or the public do so not accept the securities offered to them.

• Paid in cash, fully paid stock or debentures, or a combination thereof.

• Under the Companies Act 2013, the payment of commissions by articles is Associations and maximum fees paid are separate.

• For shares, 5% of the issue price of the shares

• For bonds, 2% of the issue price of the bond

• No subscription fee will be paid for the amount borne by the organizer, employees, directors, friends and business partners.

• Fees are paid for every issue subscribed.

• The whole issue can be brought up in public.

• Fees are calculated based on issue price unless otherwise stated.

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