Q236
Which of the following methods does a firm resort to avoid dividend payments?
A.
Share splitting
B.
Declaring bonus shares
AnswerC.
Rights issue
D.
New issue
Answer: Option B
Solution
Answer: Option B
Solution:
Declaring bonus shares methods does a firm resort to avoid dividend payments. Bonus shares are shares distributed by a company to its current shareholders as fully paid shares free of charge. to capitalise a part of the company's retained earnings.