A total of 400,000 shares of N1 each are to be issued by Sariki Company Ltd at a price of N1.20 per share.

Applications were received for 600,000 shares out of which 100,000 were dishonored. If the available shares were distributed pro-rata, what refund would be due to a subscriber who applied for 5,000 shares?

• A N1,000
• B N1,200
• C N4,800
• D N6,000