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The effect of corporate action on Balance sheet is:

Stock Split: The number of shares outstanding increases.

The face value of stock decreases(Equals Value divided by the stock split factor)

No Cash Comes to the company.

Retained Earnings and Share Capital remains the same

Bonus Issue: The number of shares outstanding increases.

The face value of shares remains same

No cash comes to the company

Share capital and paid up capital increases but retained earnings

decrease.

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Q: What is effect of corporate action on balance sheet?
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