Bonus Issue ► Bonus shares are issued to the existing shareholders (on a pro-rata basis) for free ► In essence, a bonus issue results in the same pie (the existing equity) being cut up into more pieces (shares outstanding), with each shareholder holding the same proportion of the pieces as before the share issue. ► From a shareholder's viewpoint, his or her shareholding remains unchanged except that now the shareholder owns a greater number of shares in the company.

Bonus Issue ► Bonus shares are issued to the existing shareholders (on a pro-rata basis) for free ► In essence, a bonus issue results in the same pie (the existing equity) being cut up into more pieces (shares outstanding), with each shareholder holding the same proportion of the pieces as before the share issue. ► From a shareholder's viewpoint, his or her shareholding remains unchanged except that now the shareholder owns a greater number of shares in the company.

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter5: Corporations: Earnings & Profits And Dividend Distributions

Section: Chapter Questions

Problem 14DQ

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Non-participating preference shares means a. ordinary shareholders receive a dividend rate per share equal to the preference share and all excess dividends are given to the ordinary shareholders. b. ordinary shareholders receive a dividend rate per share equal to the preference share and all excess dividends are given to the preference shareholders. c. ordinary shareholders receive a dividend rate per share equal to the preference share and all excess dividends are shared proportionately between the two classes. d. preference shareholders receive their full dividend and any excess is given to the ordinary shareholders.
4-B
Cumulative shares : Select one: a. Is a type of common shares that allows certain shareholders to own more shares b. Is a type of preferred shares that allows certain shareholders to accumulate greater voting right c. Is none of the available choices. d. Is a type of preferred shares that gives shareholders the right to collect unpaid dividends from prior period
S1: The conversion of preference share capital into ordinary share capital increases the total shareholders' equity. S2: The Donated Capital account is shown as part of share premium of the reserves section of the shareholders' equity. a. Only S1 is correct b. Only S2 is correct c. Both statements are correct d. Both statements are incorrect.
What is the paragraph means: The payment for the redemption may be made:  Out of proceeds of fresh issue of new shares  Out of company’s distributable profits  Out of capital, following procedures prescribed in the new Companies Ordinance (New Co. Ord.)
None
b) Demonstrate that in principle the shareholders will be equally well off by subscribing to the issue or by selling their rights. Assume the shareholder has 100 shares c) Explain the impact on the value of the right if the issue is undertaken on the specified terms and the share (cum-rights) price falls to € 1.8 shortly after the shareholders are invited to subscribe to the new issue
_______ preferred shares contain a provision requiring that preferred shareholders share ratably in distributions with common shareholders. Group of answer choices Participating Convertible Cumulative Redeemable
(Multiple Choice) Febrizi Corporation has preferred shares that can be converted to common shares. On the day those shares are converted: 1. Febrizi Corporations's contributed capital decreases 2. Febrizi Corporations's contributed capital increases 3. The total value of Febrizi Corporation's contributed capital does not change 4. Common Shares is debited 5. Preferred Shares is credited
The cumulative feature of preference share limits the amount of cumulative dividends to the par value of the preference share requires that dividends not paid in any year must be made up in a later year before dividends are distributed to ordinary shareholders means that the shareholder can accumulate preference share until it is equal to the par value of ordinary share at which time it can be converted into ordinary share. enables a preference stockholder to accumulated dividends until they equal the par value of the stock and receive the stock in place of the cash dividends.
What is redeemable shares? What is the dfferences between ordinary shares? What is share redemption. What is buy back?
please help with this Accounting type Question: Bonus shares mean shares issued to: A. Workers in lieu of their share in profit B. Existing equity shareholders C. Existing preference shareholders D. Existing equity shareholders and preference shareholders both