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NISM Certifications · NISM-Series-XV: Research Analyst · Company Analysis - Business and Governance

A company's promoters held 60% of its shares. They pledged 30% of their holding to lenders. What percentage of the company's total share capital is pledged?

The pledged shares equal 18% of total share capital. The promoters hold 60% of the company and pledged 30% of that holding, so the pledge is 0.60 multiplied by 0.30, which gives 18% of the total equity.

  1. A18%Correct
  2. B30%
  3. C20%
  4. D12%

Explanation

Pledged shares as a share of total capital = 60% x 30% = 18%. Choosing 30% mistakes the share of the promoter holding for the share of total capital. Choosing 12% wrongly uses 60% x 20%, and 20% is not derived from the data.

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