Question

Anish Ltd. issued a prospectus inviting applications for 2,000 shares. Applications were received for 3,000 shares and pro-rata allotment was made to the applicants of 2,400 shares. If Dhruv has been allotted 40 shares, how many shares he must have applied for?

Options

• 40

• 44

• 48

• 52

Answer 1

48

Explanation:

Out of 2,400 applied shares, only 2,000 shares were allotted.

pro-rata ratio = 2,000 : 2,400 = 5 : 6

For every 6 shares applied, 5 shares are allotted.

Dhruv was allotted 40 shares.

Shares applied = `40 × (6/5)`

= 48 shares