Abyss plc intends to make a 1 for 4 bonus issue of ordinary shares. What will be
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Abyss plc intends to make a 1 for 4 bonus issue of ordinary shares. What will be the effect of this issue on the business’s:
(i) Financial gearing,
(ii) Earnings per share,
(iii) Liquidity, and finally on
(iv) Shareholder wealth?
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The effect of a bonus issue will be as follows i A bonus issue is simply a transfer of reserves ...View the full answer
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