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What is the effect of issuing bonus shares on shareholder dividends?
  • a)
    Dividends decrease due to increased share capital.
  • b)
    Dividends increase due to higher reserves.
  • c)
    Dividends remain unchanged as bonus shares don't affect reserves.
  • d)
    Dividends fluctuate based on share price changes.
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
What is the effect of issuing bonus shares on shareholder dividends?a)...
Issuing bonus shares doesn't affect reserves, so dividends remain unchanged despite the increased share capital.
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What is the effect of issuing bonus shares on shareholder dividends?a)Dividends decrease due to increased share capital.b)Dividends increase due to higher reserves.c)Dividends remain unchanged as bonus shares don't affect reserves.d)Dividends fluctuate based on share price changes.Correct answer is option 'C'. Can you explain this answer?
Question Description
What is the effect of issuing bonus shares on shareholder dividends?a)Dividends decrease due to increased share capital.b)Dividends increase due to higher reserves.c)Dividends remain unchanged as bonus shares don't affect reserves.d)Dividends fluctuate based on share price changes.Correct answer is option 'C'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about What is the effect of issuing bonus shares on shareholder dividends?a)Dividends decrease due to increased share capital.b)Dividends increase due to higher reserves.c)Dividends remain unchanged as bonus shares don't affect reserves.d)Dividends fluctuate based on share price changes.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is the effect of issuing bonus shares on shareholder dividends?a)Dividends decrease due to increased share capital.b)Dividends increase due to higher reserves.c)Dividends remain unchanged as bonus shares don't affect reserves.d)Dividends fluctuate based on share price changes.Correct answer is option 'C'. Can you explain this answer?.
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