WAEC - Commerce (2009 - No. 32)
The nominal value of kC Ltd's share is 50k and the market value is 70k. This means that the company's shares are selling
at par
ex dividend
cum dividend
at premium
Explication
Shares are said to be sold at a premium when it is sold for an amount higher than the nominal value. The amount in excess of the face value is the premium.
In the case, the premium is 20k