Which of the following is the main difference between a subdivision and a bonus issue?
In a bonus issue, the paid-up share capital of the company increases while in a subdivision the paid-up share capital remains unchanged
In a subdivision issue, the paid-up share capital of the company increases while in a bonus issue the paid-up share capital remains unchanged
In a bonus issue, the described par value of the security would be divided by a factor determined by the company
In a subdivision, the described par value of the security would be divided by a factor determined by the company
The answer is
In a bonus issue, the paid-up share capital of the company increases while in a subdivision the paid-up share capital remains unchanged
In bonus issue,new shares are issued while existing shares are divided into smaller denominations under sub division and hence does not lead to an increase in paid up capital
Which of the following is the main difference between a subdivision and a bonus issue? In...
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A corporation is authorized by its corporate charter to issue 10,000 shares of preferred stock with a 7% dividend rate and a par value of $3 per share, and 25,000 shares of common stock with a par value of $1 per share. On January 15, 2015, 1,000 shares of preferred stock were issued for $7 per share along with 10,000 shares of common stock for $5.50 per share. How much would each account increase by for the issuance of the...
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