Answer:
The customer can buy 40 shares at $960.
Explanation:
Step 1: The number of shares the customer can buy can be calculate as follows:
NSCB = NSOC ÷ NSNS ......................................... (1)
Where;
NSCB = Number of shares a customer can buy = ?
NSOC = Number of shares owned by the customer = 200
NSNS = Number of shares needed to subscribe to one new share = 5
Substituting the values into equation (1), we have:
NSCB = 200 ÷ 5 = 40 shares
Therefore, The number of shares the customer can buy is 40 shares.
Step 2: The amount to pay for the number of shares the customer can buy can be calculated as follows:
ANSCB = NSCB × PNS .............................. (2)
Where;
ANSCB = Amount to pay for the number of shares the customer can buy = ?
NSCB = Number of shares a customer can buy = 40
PNS = Price of the new share = $24
Substituting the values into equation (2), we have:
ANSCB = 40 × 24 = $960
Therefore, the customer can buy 40 shares at $960.
