Question
If a company issues bonus shares in the ratio of 3:5,
what would be the new number of equity shares held by a shareholder who owns 2,000 shares?Solution
Bonus shares in ratio 3:5 → for every 5 shares, 3 bonus shares = (2000 / 5) × 3 = 400 × 3 = 1,200 bonus shares New total = 2,000 + 1,200 = 3,200
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