Which one of the following statements does not describe a bonus issue of shares?
A) An issue of shares at a discount to the current market price to existing shareholders.
B) A capitalization of distributable reserves by the issue of shares to existing shareholders.
C) A free issue of shares to existing shareholders which raises no new cash for the issuing company.
D) An issue of shares that increases the number of shares in issue while reducing distributable reserves.
Correct Answer:
Verified
Q20: Tyla Limited has total assets of £15,000,000
Q21: Folly Limited wishes to raise £300,000 in
Q22: Duck Limited wishes to raise £1,200,000 in
Q23: Paolo Limited is issuing 200,000 ordinary shares
Q24: Carola Limited is issuing 250,000 ordinary shares
Q26: Timmy Plc is making a bonus issue
Q27: Bonus issues of shares involve the capitalisation
Q28: Bonus shares are issued to existing shareholders
Q29: Bonus shares are issued to existing shareholders
Q30: XYZ Plc is making a rights issue.
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