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

A. Share splitting

B. Declaring bonus shares

C. Rights issue

D. New issue

Answer: Option B

Solution(By Examveda Team)

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.

This Question Belongs to Commerce >> Financial Management

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