Which of the following will be the effect when a company makes a bonus issue of two

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Which of the following will be the effect when a company makes a bonus issue of two for every five ordinary shares?

(a) The liquidity of the company will improve

(b) The company will have more capital employed (meaning total assets)

(c) Capital and reserves of the company will increase

(d) The amount of some items within Equity and reserves will change

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Financial Accounting An Introduction

ISBN: 9780273737650

2nd Edition

Authors: Mr Barry Elliott, Mr Augustine Benedict

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