Dear Seniors,
I have a question on bonus issue. A company has announced robust earnings for 2005 with net profit crossing the $ 1 billion mark and total assets growing to $ 26.3 billion. The board of directors has proposed bonus shares of between 15 per cent and 25 per cent as cash dividend.
The shares are currently traded at 24 (face value 1). What could be the probable effect on its market price and what should a short-term trader do?
Thanks
I have a question on bonus issue. A company has announced robust earnings for 2005 with net profit crossing the $ 1 billion mark and total assets growing to $ 26.3 billion. The board of directors has proposed bonus shares of between 15 per cent and 25 per cent as cash dividend.
The shares are currently traded at 24 (face value 1). What could be the probable effect on its market price and what should a short-term trader do?
Thanks