If a company issues bonus shares the debt equity ratio will:

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Debt-Equity Ratio, Proprietary Ratio, Interest Coverage Ratio?
Posted by:
Adeel Akhtar
25-October-2017

Accounting

Question added by fdsfsdg gfsdgs
Date Posted: 2015/10/12

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by JULIUS MURE MWARO , ACCOUNTANT , said abeid said & co.

The debt equity ratio decrease since debt will not be affected by issuing bonus share , and as for equity shareholders will increase affecting the ratio downwards.

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If a company issues bonus shares the debt equity ratio will:

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