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Examveda

The bonus issue is permitted to be made out of __________ and premium collected in cash.

A. free reserves

B. free interest

C. free bonus

D. free cash dividend

Answer: Option A

Solution(By Examveda Team)

The bonus issue is permitted to be made out of free reserves and premium collected in cash. A bonus issue, also known as a scrip issue or a capitalization issue, is an offer of free additional shares to existing shareholders.

This Question Belongs to Commerce >> Financial Management

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