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Management · Q236

Financial Management

Graduate and Post Graduate · Management · question 236

Q236

Which of the following methods does a firm resort to avoid dividend payments?

A.
Share splitting
B.
Declaring bonus shares
Answer
C.
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.