…... shares are issued free of cost

Related MCQs

• National Ltd. Has 12,000 equity shares of Rs.100 each. Sale price is equity share Rs.115 per share; flotation cost Rs.5 per share. Expected dividend growth rate is 5% and expected dividend at the end of the financial year is Rs.11 per share, What is the cost of equity shares of National Ltd?
• Black & White Ltd. Has a cost of equity of 11% and a pre-tax cost of debt of 8.5%. The firm's target Weighted average cost of capital is 9% and its tax rate is 35%. What is the firm's target debt-equity ratio?
• A shareholder invests in a Company's Shares mainly------
• …… increases the number of shares without actually increasing the paid - up value of the share capital.
• ….principle says that issue of debt and preference shares do not affect the interest of equity share holders.
• The distribution of shares in a subsidiary to existing parent company’s stockholder is called ……
• ……. is the ratio in which an acquiring company will offer its own shares in exchange for the target company’s share during merger .
• This strategy enables the existing shareholders of the target company to buy additional shares at a high discount rate.
• Stock dividend and bonus shares are synonymous terms.
• Savings in respect of a cost is treated in capital budgeting as: