4. A company has the following capital structure: Equity share capital (*100/share) Share premium Reserves and surpluses

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4. A company has the following capital structure: Equity share capital (*100/share) Share premium Reserves and surpluses 200 300 300 The company's market price per share is 150. It declares a bonus issue of shares in the ratio of 1:3 to ordinary shareholders. What is the effect on the share price after the issue of bonus share?

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