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. Cash dividend is one capital payout policy.

b. 1 for 5 rights issue at a subscription price of $1 when the pre-announcement stock price was $3, will increase the number of shares by 20% and decrease the share price by 11.11%.

c. 3 for 2 stock split will increase the number of shares by 50% and decrease the share price by 33.33%.

d. 10% stock buy-back will decrease the number of shares by 10%. e. 1 for 2 bonus issue will increase the number of shares by 50% and decrease the share price by 50%.