Sun Shine Ltd, issued a prospectus inviting applications for 3,000 shares. Applications were received for 4,000 shares and pro- rata allotment was made to the applicants of 3,600 shares. If Ramesh has been allotted 90 shares, how many shares he must have applied for?
(A) 100
(B) 120
(C) 108
(D) 80
Answers
(A) 100 must have been applied.
GIVEN: For 4000 shares 3600 were allotted on a pro-rata basis.
TO FIND: Shares applied by the subscriber who got 90 shares.
SOLUTION:
According to the question,
Applications were received for 4000 shares.
3600 shares were allotted to them.
That means,
The subscriber who applied for 100 shares,
got 90 shares.
This allotment is made based on Pro-rata. In this kind of allotment, the company decided a specific ratio by the shares applied and allotted.
A company makes pro-rata allotment, when the issue is oversubscribed that is the excess money received is adjusted at the time of application firstly, and the rest of the money during respective calls.
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Answer: (A) 100
If Ramesh has been allotted 90 shares, how many shares he must have applied for 100
Explanation:
Given:
3600 of the 4000 shares were distributed proportionally.
To Find:
The subscriber who received 90 shares requested for shares.
Solution:
4000 shares were the subject of applications.
They received a share allocation of 3600.
In other words, the subscriber who requested 100 shares received 90 shares.
This allocation is made pro rata. The corporation chose a certain ratio based on the shares that were applied for and allocated in this type of allocation.
When an issue is oversubscribed, a firm makes pro-rata allocations. This means that the excess money received is adjusted at the time of application initially, and the remaining money is during the appropriate calls.
Conclusion:
If Ramesh has been allotted 90 shares, how many shares he must have applied for 100.
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