alleryStart learning →An investor holds 100 shares costing Rs 400 each and takes up 1:1 rights at Rs 200. Average cost is:
ARs 200
BRs 600
CRs 400
DRs 300
Answer & Solution
Correct answer: D. Rs 300
Total cost is 40,000 + 20,000 = Rs 60,000 over 200 shares, giving Rs 300 per share.
Keep practising Company Accounts
Browse all Company Accounts questions for CA Foundation, or explore more Accounting topics.
Related questions
Investors were historically given what as evidence of share ownership?Putable preference shares let the holder, in some conditions, to:On liquidation, a preference share's claim is relative to common stock:Most preference shares carry which voting position?Convertible preference shares can be exchanged by holders for:Non-cumulative preference dividends, if unpaid in a year:Preference shares usually rank for dividend payment:A cumulative preference share means unpaid dividend will: