Question 961 stock split, bonus issue
Which one of the following statements is NOT correct? A 1-for-4 bonus issue:
(a) Will increase the number of shares by 25%.
(b) Will decrease the share price by 25%.
(c) Is equivalent to a 5-for-4 stock split.
(d) Is equivalent to a 25% stock dividend.
(e) Has no effect on the firm's cash flow.
Copyright © 2014 Keith Woodward