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Navarra Ltd is considering using share bonus and share split to dilute its equity ownership. The company currently has 4 million shares outstanding on the

  1. Navarra Ltd is considering using share bonus and share split to dilute its equity ownership. The company currently has 4 million shares outstanding on the market. Its share price is $32.
  1. If Navarra choose to use the share bonus of 8%, what will be the change in the number of shares outstanding and market share price after the share bonus?
  2. If Navarra choose to use a 5 to 4 share split, what will be the change in the number of shares outstanding and market share price after the share split?
  3. From the companys perspective, should it prefer the share bonus or the share split?

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