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The bonus issue is permitted to be made out of and...

This question belongs to Commerce Financial Management
Financial Management
?

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

Answer & Solution
Correct Answer: Option A
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.
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