Comment on the following quotes:

(a) ‘Bonus shares increase the shareholders’ wealth because, after the issue, they have more shares, but each one of the same nominal value as they had before. Share splits, on the other hand, do not make the shareholders richer, because the total nominal value of their shareholding is the same before the issue as after it.’

(b) ‘By law, once shares have been issued at a particular nominal value, they must always be issued at that value in any future share issues.’

(c) ‘By law, companies can pay as much as they like by way of dividends on their shares, pro¬ vided that they have sufficient cash to do so.’

(d) ‘Companies do not have to pay tax on their profits because the shareholders have to pay tax on their dividends.’