what is stock split up
A corporate action in which a company's existing shares are
divided into multiple shares. Although the number of shares
outstanding increases by a specific multiple, the total
dollar value of the shares remains the same compared to pre-
split amounts, because no real value has been added as a
result of the split.
In the U.K., a stock split is referred to as a "scrip issue",
"bonus issue", "capitalization issue" or "free issue".
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journal entries
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journal
Volga is a large manufacturing company in the private sector. In 2007 the company had a gross sale of Rs.980.2 crore. The other financial data for the company are given below: Items Rs. In crore Net worth 152.31 Borrowing 165.47 EBIT 43.17 Interest 34.39 Fixed cost (excluding interest) 118.23 Calculate: a. Debt equity ratio b. Operating leverage c. Financial leverage d. Combined leverage. Interpret your results and comment on the Volga’s debt policy
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