A bonus issue will have an impact on:

Question

Quizplus · Accepted Answer

A bonus issue involves issuing additional shares to existing shareholders without any extra cost, based on the number of shares they already own. This increases the total number of shares outstanding, affecting the weighted-average number of ordinary shares. It does not directly impact the number of issued preference shares, the overall debt of the entity, or the overall value of the owners' equity, as it is essentially a reallocation of reserves to issued share capital.

A Bonus Issue Will Have an Impact On