Rights issue fraction in Eps calculation

CComfort5y ago

Good day sir, I found out that if a capital change is due to a bonus issue, each preceding shares available must be multiplied by the bonus fraction. I want to confirm if the same is true for right issue i.e Do all the preceding also get affected or just the immediate balance before the rights issue? Thanks

P2-D2Tutor5y ago#1

Hi, Yes, you are correct. If we have a rights issue then the shares in issue prior to the issue taking place are adjusted using the rights issue fraction. Thanks

CComfort5y ago#2

Thanks for the reply sir To confirm you mean only the immediate shares in issue prior to the right issue is adjusted right?

P2-D2Tutor5y ago#3

You're welcome! It would be all shares in issue prior to the rights issue. So, if there was a rights issue in 30 June, then we would apply it to the shares in issue before this date. Thanks

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