Question
Gamma Plastics Ltd made a1-for-2 bonus issue of ordinary shares during the year. Which ONE of the following changes to the financial ratios of the
Gamma Plastics Ltd made a1-for-2 bonus issue of ordinary shares during the year. Which ONE of the following changes to the financial ratios of the business will occur as a result of this shareissue?
A.
A decrease in the gearing ratio
B.
An increase in the acid test ratio
C.
A decrease in the return on ordinaryshareholders' funds
D.
A decrease in earnings per share
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Introductory Financial Accounting for Business
Authors: Thomas Edmonds, Christopher Edmonds
1st edition
1260299449, 978-1260299441
