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Assume Dorper Co. wishes to issue shares at a price of $12 each. $6 is payable on allotment and $2 is payable on call.Jemima wishes to purchase 3,000 Dorper Co. shares. What is the total amount payable by Jemima at the application stage?(Enter numbers only without any symbols, e.g. 1234)

Question

Assume Dorper Co. wishes to issue shares at a price of 12each.12 each. 6 is payable on allotment and $2 is payable on call.Jemima wishes to purchase 3,000 Dorper Co. shares. What is the total amount payable by Jemima at the application stage?(Enter numbers only without any symbols, e.g. 1234)

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Solution

The total amount payable by Jemima at the application stage is calculated as follows:

  1. Determine the price per share at the application stage. In this case, the price per share is $12.

  2. Determine the number of shares Jemima wishes to purchase. In this case, she wants to buy 3,000 shares.

  3. Multiply the price per share by the number of shares to find the total amount payable.

However, it's important to note that only a portion of the total share price is payable at the application stage. In this case, 6ispayableonallotmentand6 is payable on allotment and 2 is payable on call. This means that the remaining 4(4 (12 total price - 6onallotment6 on allotment - 2 on call) is payable at the application stage.

So, the calculation would be:

4(amountpayableatapplicationstagepershare)x3,000(numberofshares)=4 (amount payable at application stage per share) x 3,000 (number of shares) = 12,000

So, Jemima would need to pay $12,000 at the application stage.

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