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Question - Fincorp Ltd was registered on 1 January 2016 with an authorised share capital of 250 000 ordinary shares. During January 2016, 50 000 ordinary shares were offered to the incorporators of the company at a value of R500 000. These shares were taken up and paid for by the incorporators. On 1 August 2016 the company offered 150 000 ordinary shares for subscription to the public at a value of R3 750 000. Applications for 175 000 shares were received by 26 August 2016, the closing date for applications. On 31 August 2016 the shares were allotted and the money repaid to unsuccessful applicants.
What is the correct amount that Fincorp Ltd must repay to the unsuccessful applicants?
1. R 625 000
2. R1 250 000
3. R3 750 000
4. R4 375 000
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