The Effect of a Bonus Issue to All Shareholders on (A)net

question 65

Multiple Choice

The effect of a bonus issue to all shareholders on (a) net asset backing per share,(b) each shareholder's share of net assets and (c) market capitalisation is:

• A) (a) The net asset backing per share will decrease; (b) each shareholder's share of net assets will remain the same; (c) evidence suggests that on average the market capitalisation will increase.
• B) (a) The net asset backing per share will increase; (b) each shareholder's share of net assets will increase; (c) evidence suggests that on average the market capitalisation will remain the same.
• C) (a) The net asset backing per share will decrease; (b) each shareholder's share of net assets will decrease; (c) evidence suggests that on average the market capitalisation will remain the same.
• D) (a) The net asset backing per share will remain the same; (b) each shareholder's share of net assets will decrease; (c) evidence suggests that on average the market capitalisation will decrease.

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Definitions:

Taken-For-Granted Truths

Beliefs or assumptions that are universally accepted without question or critical examination.

Gender

The range of characteristics pertaining to, and differentiating between, masculinity and femininity, often based on societal norms or expectations.

Feminist Sociology of Knowledge

A branch of sociology that explores how knowledge production is influenced by gender dynamics, biases, and inequalities.

Subordination

The process or condition of being placed in a lower rank, value, or importance, often in a hierarchical relationship.