Slater Ltd's share capital comprises 100 000 fully paid share with an issue price of $5.00 per share.
-On 30 April 20X9 the directors of Slater Ltd decided to consolidate the company's shares.How many shares will Slater Ltd have on issue if those shares are fully paid to $10.00 after the consolidation?

Question

Quizplus · Accepted Answer

The consolidation process involves combining the existing shares into fewer shares with a higher nominal value per share. Since the original shares were $5.00 each and are being consolidated to a new value of $10.00 each, this effectively halves the number of shares. Therefore, 100,000 shares at $5.00 each become 50,000 shares at $10.00 each after consolidation.

Slater Ltd's Share Capital Comprises 100 000 Fully Paid Share