CS Executive DEC 2015 Q1 (a)

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  1. Shrey Maheshwari

    Shrey Maheshwari New Member

    Could someone please provide the solution to the following problem with supporting explanations:

    Jai Ltd. announced issue of bonus shares in the ratio of 1:3 (i.e. one share for every three shares held). At present the face value of share is Rs. 10, current market price is Rs. 621. In addition, it announced split of shares by reducing face value from Rs. 10 to Rs. 2. Calculate the share price if all other things remain constant. What would have been the situation if split would have been done before the issue of bonus shares?
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