FREPS - Bonus Issue (Bonus Fraction?)

its easy to do this way.else you can do 40000000*1/4 =10000000, then add it to the original 40000000 = 50000000 now time apportion it, 50000000*3/12 = 12500000

thing with bonus is that they are treated as if they were issued in the begginning, so for every 4 shares they had now have 5 shares in total..

Hi, could you please interpret this bonus fraction Proof of bonus fraction By taking the bonus fraction as 1.1, we are stating that the rights issue is the equivalent of a 1 for 10 bonus issue plus a full price issue for the remainder of the shares. Considering an individual who held 40 shares before the rights issue, this would mean taking a bonus of 4 shares and paying the full price for 6 (taking his year end holding upto 50 shares as would be the case following the 1 for 4 rights issue). We will show that the share price under this alternative is the same as we calculated above and hence the two are equivalent.

Hi, could you please interpret this bonus fraction Proof of bonus fraction By taking the bonus fraction as 1.1, we are stating that the rights issue is the equivalent of a 1 for 10 bonus issue plus a full price issue for the remainder of the shares. Considering an individual who held 40 shares before the rights issue, this would mean taking a bonus of 4 shares and paying the full price for 6 (taking his year end holding upto 50 shares as would be the case following the 1 for 4 rights issue). We will show that the share price under this alternative is the same as we calculated above and hence the two are equivalent.