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Which of the following generally not result in increase in total dividend liability ?

(a)Share-split

(b)Right Issue

(c)Bonus Issue

(d)All of the above

(e) Non of the above.

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Question added by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.
Date Posted: 2015/02/19
Kunal Patil
by Kunal Patil , Jr. Officer , Avenue Super mart Ltd.(D-Mart)

If the company liability is increase then obviously company faces the loss then they can't issue bonus, Right issue, share slipt.

so ans is (e).

imran Noor -
by imran Noor - , Audit Officer , Auditor General of Pakistan

The correct answer is (e)

In all the cases (a, b & c), the total number of shares increases and so the dividend liability. 

 

VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

Answer option (a)>>>>>>>>>>>>>>>  Share-split

 

In share split though the number of shares increases the Paid up capital remain unchanged and the dividend payout remains the same.

 

In Right Issue and Bonus issue, the number of shares as well as Paid up capital increases and the New Rights shares and Bonus shares are eligible for pro-rata dividend at the time of declaration of dividend.

 

Tamer Elbeshbishy
by Tamer Elbeshbishy , Financial and Administration Manager , Muscat Towers Holding Group

In fact, as a dividends liability, it will be raised because of the real increase in the obligation to be more for only the shareholders. In the given examples, all of them either do not  cause an increase of the dividends liability , or cause increase in other liability which is not a dividends. So the correct answer is C.. all of he above.

Deleted user
by Deleted user

Answer  A  is the right option .

FITAH MOHAMED
by FITAH MOHAMED , Financial Manager , FUEL AND ENERGY CO for transportion petroleum materials

(a)>>>>>>>>>>>>>>Share-split

Mohammed Salim Allana
by Mohammed Salim Allana , Compliance and Assurance Manager , United Arab Bank

Obviously Share split will not increase any additional liability.

Muhammad Shoaib Qureshi
by Muhammad Shoaib Qureshi , Manager Finance , Pakistan Telecommunication Company Limited

Bonus issue does not result in increase in total dividend liability.

Vinod Jetley
by Vinod Jetley , Assistant General Manager , State Bank of India

It depends  on the dividend policy. If it is5% of face value. Then (a)Share-split  is the only right answer.

fadil hoory
by fadil hoory , محاسب , شركة مقاولات بالسعودية

According   to   what  I  understand  I  think  the  second  answer

(b)Right Issue

Mir Mujtaba Ali
by Mir Mujtaba Ali , Internal Audit Manager , Confidential

(b) Right issue - (this is my guess)

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