What is the source of funds for issuing Bonus shares?(1.0 Marks)Cash From New InvestorsAFree Reserves And Surplus Of The CompanyBBank LoansCGovernment Grants

Which of the following statements is true about Bonus shares?(1.0 Marks)They Are Issued At A Discounted PriceAExisting Shareholders Pay For ThemBThey Are Issued To New InvestorsCThey Are Issued Out Of Free Reserves And Surplus

Bonus shares refer to:a.Additional shares distributed to shareholders as dividendsb.Additional shares issued to raise additional capitalc.Additional shares issued for employee stock optionsd.Additional shares purchased in the open market

_____ is merely a conversion of existing reserves and surpluses into share capital. It does not result in raising fresh capital. It represents just a book entry subject to certain rules and regulations.*Book buildingdistribution.Issue of bonus sharesAdvertising a public issueUnderwriter

A bonus issue of shares to existing shareholders has which of the following impacts on the equity of a company? Total equity increases. Total equity decreases. No overall change in total equity. Only the amount of issued share capital changes.

Which of the following is considered an external source of funds for a company?a.Sale of common stockb.Depreciationc.Loan repaymentd.Retained earnings