…… increases the number of shares without actually increasing the paid - up value of the share capital.

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?
• ….principle says that issue of debt and preference shares do not affect the interest of equity share holders.
• ……. is the ratio in which an acquiring company will offer its own shares in exchange for the target company’s share during merger .
• ABC Ltd. acquires hundred percent of preference share capital of PQR Ltd. It would result in
• Dividend on preference share capital is ignored while calculating operating leverage.
• ………. on capital is called cost of capital.
• Use of more debt capital rather than equity capital is called……
• Which of the following capital budgeting methods has the value additive property?
• The policy in which less dividend is paid is
• …... shares are issued free of cost