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3 years ago

If a company issues bonus shares, what is the most likely effect on its debt-equity ratio?

Mathematics

1 answer:

Lena [83]3 years ago

7 0

Answer:

If a company issues bonus shares, there will be no increase in the capital and the debt-equity ratio remains unchanged.

Step-by-step explanation:

Free additional shares offered to existing shareholders is known as a bonus issue.

Bonus issues are given to shareholders when companies are short of cash and shareholders expect a regular income. It may also be issued to restructure company reserves.

However, issuing bonus shares does not involve cash flow. It increases the company’s share capital but not its net assets.

Since bonus issues only increase the number of shares a shareholder is holding but not the ratio/percentage of holding. Thus, if a company issues bonus shares, there will be no increase in the capital and the debt-equity ratio remains unchanged.

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3 years ago

Order of Operations

Rufina [12.5K]

9 - (a - 7)

Note that - = -1

First, distribute - 1 to all terms within the parenthesis

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3 years ago

Read 2 more answers

Pls, help me with this math question

olya-2409 [2.1K]

Answer:

Perimeter $\sqrt{26}+\sqrt{5}+\sqrt{10}+\sqrt{17}$ units. Area 12 square units.

Step-by-step explanation:

Perimeter: total distance around the figure.

Distance Formula: the distance between points $\left(x_1,y_1\right) \text{ and } \left(x_2,y_2\right)$ is

$d=\sqrt{\left(x_2-x_1\right)^2+\left(y_2-y_1\right)^2}$

$AB=\sqrt{(6-1)^2+(2-1)^2}=\sqrt{25+1}=\sqrt{26}$

$BC=\sqrt{(5-6)^2+(4-2)^2}=\sqrt{1+4}=\sqrt{5}$ $CD=\sqrt{(2-5)^2+(5-4)^2}=\sqrt{9+1}=\sqrt{10}$ $DA=\sqrt{(1-2)^2+(1-5)^2}=\sqrt{1+16}=\sqrt{17}$

The perimeter is the sum of all those segment lengths.

One way to find the area of the figure is to surround it with a rectangle, insert some lines so that the areas you do not want can be found and subtracted from the rectangle's area. (See attached image.)

The area of the large rectangle around the figure is 5 x 4 = 20 square units.

The triangles have areas 1/2 (base) (height):

A. (1/2)(1)(4) = 2 square units

B. (1/2)(3)(1) = 1.5 square units

D. (1/2)(1)(2) = 1 square unit

E. (1/2)(5)(1) = 2.5 square units

Square C. (1)(1) = 1 square unit

Total of all the area you don't want to include:

2 + 1.5 + 1 + 2.5 + 1 = 8 square units

Subtract 8 from the surrounding rectangle's area of 20, and you get the area of the figure is 20 - 8 = 12 square units.

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