2.2 - Issue of Shares
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Practice Questions
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Define equity shares and preference shares.
💡 Hint: Think about the nature of dividends for each type of share.
What is face value?
💡 Hint: Consider it like the base price of a share.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What type of shares have a fixed rate of dividend?
💡 Hint: Consider which type provides guaranteed dividends.
True or False: Equity shares always provide a dividend.
💡 Hint: Think about profit distribution among shareholders.
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Challenge Problems
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A company has issued 4,000 equity shares at ₹10 each and 1,500 preference shares at ₹12 each. What is the total capital raised if all shares are sold?
💡 Hint: Break down the calculations for each type of share.
If a shareholder fails to pay for their equity shares and those shares are forfeited and reissued at a discount of ₹2, how does that impact the company's balance sheet?
💡 Hint: Consider how both actions reflect on the company's financial health.
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