Accountancy, asked by zarlishchaudery, 8 months ago

c) What will be the effect of issuance of Bonus Shares by a Company on the Book Value Per Share of the Company?

Answers

Answered by yashshimpi5678
1

Answer:

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Explanation:

Why does the stock price fall when bonus shares are issued? The reserve of the company contracts and the share capital expands post a bonus issue. The absolute book value of the company remains the same, but due to the increase in the number of outstanding shares, the book value per share falls.

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