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  1. Hi sir, I watched the lecture and my question is, if I was asked to list ways of raising equity finance, could I list stock splits, scrip dividends,issuing of shares, retained earning, cliente effect, signal effect etc, because you said bonus issues and stock split is not a source of finance, why were they listed in the notes? Are just for the reduction in share price, so that others can purchase share

    • Bonus issues and stock splits are in the notes because you are expected to know what they are. The notes specifically state that they are not sources of finance because no money is raised!!!

      The only ways of raising equity finance are by issuing new shares for money or by using retained earnings (i.e. reduce dividends).

      You need to read the notes properly – not just the headings – and the lectures and notes say the same thing.

  2. Hi john

    for the script dividend if they choose to take shares instead of cash does this means a extra shares is added to the old shares equivalent to the amount in dollars

    for example I have 1000 shares worth $10,000 and I choose shares instead of cash is it that I have 1000 new shares plus my 1000 old shares equal to 2000 shares

    • How many new shares you get depends on what dividend the company decides to give. In your example, the share are currently worth $10 per share. So if your dividend was (say) $30 then you would be given 3 new shares.

  3. Hi Prof!

    Another great lesson! Thanks!

    English is not my first language, but I can understand your lessons beautifully! You explain things in a way that everything seems easy. And you have a lovely accent, easy to listen to.

    Thanks again!

  4. Hello Prof.

    Thanks for the wonderful lecture.

    Is it possible for the company to have various agreements with different shareholders as regards to what percentage of dividends they’re paid and what percentage of their would be dividends go into retained earnings?

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