The Debt Equity Ratio of a Company is 1: 2. State Whether 'Issue of Bonus Shares' Will Increase, Decrease Or Not Change the Debt Equity Ratio. - Accountancy
The Debt Equity ratio of a company is 1: 2. State whether 'Issue of bonus shares' will increase, decrease or not change the Debt Equity Ratio.
Debt Equity Ratio = `"Debt"/"Equity"`
Issue of bonus shares will increase the value of equity thereby causing a decrease in the debt-equity ratio.
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