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now if after the bonus issue of 1 for 4 company has $ 50,000 worth of shares and 250,000 (20cents) number of share
how do i calculate the worth of shares and number of shares before the bonus issueIf it’s a 1 for 4 bonus issue …
Assume that you used to have 4 shares
Now you have 5 following the 1 for 4 bonus
So, here you are with 5 shares and you want to know how many you had before the bonus issue
To find the bonus element, divide your current holding by 5 (the total of 1 and 4) and multiply by 1 (the bonus element)
So, in your case, that’s 5 divided by 5 multiplied by 1
Now, if the bonus had been a 3 for 8 bonus and you now hold 253 shares ….
… divide your current holding by 11 (the total of 3 and 8) …
… and that gives you 23 …
… which you multiply by 3 …
… and that gives you 69 …
… and that represents the bonus element of your current holding of 253
That current holding is made up of 184 shares before the bonus, the bonus of 69, and the share holding after the bonus of 253
OK?
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