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Answer Posted / kumaraswamy.m
1.if a companey need further capital or for its expation
of
business its going to issue bonous shares to share
holders , for this the companey converts the profits of
share holders into shares ,
2. it is benificial for the redusing the cost
of
furter issuinwhen a company makes profits and it issues
dividends.
Dividends should always paid in cash. but some times it
happens that after making profits also tne cash postion
shows weak.
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