EPSForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › EPSThis topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.Viewing 2 posts - 1 through 2 (of 2 total)AuthorPosts February 12, 2017 at 3:09 pm #372089 mmensahMemberTopics: 39Replies: 43☆☆Hi Sir.I understand why a rights issue will cause EPS to fall.. because we now have more shares for the same earnings… but why would this cause a reduction in dividend? Will the shareholders not get more dividend now they own more shares?thanks February 12, 2017 at 4:15 pm #372099 John MoffatKeymasterTopics: 57Replies: 54499☆☆☆☆☆The rights issue itself will not affect the total dividend that the company pays.With more shares in issue it will mean therefore a lower dividend per share.AuthorPostsViewing 2 posts - 1 through 2 (of 2 total)The topic ‘EPS’ is closed to new replies.