1 for 2 bonus issue – means we’ve now got 3 where we used to have 2 = 3/2 2 for 5 – now got 7 used to have 5 = 7/5 3 for 4 – now got 7 used to have 4 = 7/4

Let’s suppose that there are 100,000 shares. If we do a bonus issue of 1 for every 2 shares held, then it means that we will be issuing 50,000 shares. So, the new no. of shares become (100,000+50,000) = 150,000. The original was 100,000 shares, the fraction being:- 150,000/100000 = 3/2. Got it ?

Example 2 is not covered, and study text do not give any explanation on how to get that 3/2 fraction. I also cannot figure it out for two days now. Could you explain, if you got the point?

gloriachoi says

Bonus Fraction Calculation – Bonus issue

1 for 2 bonus issue – means we’ve now got 3 where we used to have 2 = 3/2

2 for 5 – now got 7 used to have 5 = 7/5

3 for 4 – now got 7 used to have 4 = 7/4

Hope this helps.

ChampionShez says

Let’s suppose that there are 100,000 shares. If we do a bonus issue of 1 for every 2 shares held, then it means that we will be issuing 50,000 shares. So, the new no. of shares become (100,000+50,000) = 150,000. The original was 100,000 shares, the fraction being:- 150,000/100000 = 3/2. Got it ?

saksham24 says

Hello sir,

In example no. 2 of study text, why fraction is being used as 3/2 ?

raghavanmani says

bro, I think it is explained in the previous video at the end.

zeeshankhs says

It is not I’m still confused how we got 3/2

abusan says

Example 2 is not covered, and study text do not give any explanation on how to get that 3/2 fraction. I also cannot figure it out for two days now. Could you explain, if you got the point?