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1,00,000 face value of debentures is converted into Rs 10 shares issued at Rs 2.50 premium. How many shares are issued?
A10,000
B12,500
C8,000
D1,000
Answer & Solution
Correct answer: C. 8,000
Each share is issued at Rs 12.50, and Rs 1,00,000 divided by Rs 12.50 is 8,000 shares.
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