+3 votes
in Class 12 by kratos

Assuming that the Debt Equity Ratio is 2:1. State giving reason, whether the ratio will improve, decline or will have no change in case bonus shares allotted to equity shareholders by Capitalizing profits.

1 Answer

+3 votes
by kratos
 
Best answer

Debt equity ratio will not change as the total amount of shareholders funds will remain same.

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