Capital contributed by the shareholders of a company is known as share

capital. When companies require additional funds from the public, the company

would normally use the services of a financial institution to handle the

additional share issue on their behalf.

Craft Ltd underwrites an issue of 250 000 ordinary shares at R3

each in Sontech Ltd. Craft Ltd charges commission of 8% for their

services . The public took up 235 000 of the shares that were on offer.

Required: 

What

will the commission payable be to Craft Ltd?