A company conducts the following capital payout and raising policies. Assume that there are no taxes, no signalling effects and no transaction costs.

Which one of the following statements is NOT correct?

a.

20% stock dividend (not a cash dividend) will increase the number of shares by 20%.

b.

2 for 3 bonus issue will increase the number of shares by 66.67% and decrease the share price by 40%.

c.

5 for 3 stock split will increase the number of shares by 60% and decrease the share price by 66.67%.