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Question 3 a) Given below the partial balance sheet of Usahawan Bhd as at 31/12/2021 RM8 Par Value of stock Common Share Paid-in Capital RM2

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Question 3 a) Given below the partial balance sheet of Usahawan Bhd as at 31/12/2021 RM8 Par Value of stock Common Share Paid-in Capital RM2 million RM6 million Retained earnings RM22 million Total RM30 million The current market price of the common share is RM24.00. Show the effect on the company's capital position if: i) it declares 20% stock dividend (10 marks) ii) it declares a 4:1 stock split (6 marks) b) Individual investors are faced with various constraints. Explain any two (2) of these constraints. (4 marks) Question 3 a) Given below the partial balance sheet of Usahawan Bhd as at 31/12/2021 RM8 Par Value of stock Common Share Paid-in Capital RM2 million RM6 million Retained earnings RM22 million Total RM30 million The current market price of the common share is RM24.00. Show the effect on the company's capital position if: i) it declares 20% stock dividend (10 marks) ii) it declares a 4:1 stock split (6 marks) b) Individual investors are faced with various constraints. Explain any two (2) of these constraints. (4 marks)

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