Split
This query is : Resolved
19 August 2010
A compnay has declared 16:1 split..Is it a reverse or forward split...Whts the net effect of shares and Earnings Per share.
Thanks
Thanks
20 August 2010
hi
Normlly company goes for split , whenever the STOCK PRICES are very high and not available for nomal investors
FORWARD SPLIT
Giving extra shares to holding one
eg:
if you hold 100 shares of company and each worth Rs 200
then total worht is 100*200=RS20000
(compay wants to split the shares due to high value and voltality)
spilt (forward)16:1
then total worth is 1600*12.5=RS20000
That means your Worth will not change
2)EPS=INCOME AVAILABLE FOR INVESTORS/OUSTANDING SHRARES
since denominator increased in FORWARD split the EPS will decrease
Normlly company goes for split , whenever the STOCK PRICES are very high and not available for nomal investors
FORWARD SPLIT
Giving extra shares to holding one
eg:
if you hold 100 shares of company and each worth Rs 200
then total worht is 100*200=RS20000
(compay wants to split the shares due to high value and voltality)
spilt (forward)16:1
then total worth is 1600*12.5=RS20000
That means your Worth will not change
2)EPS=INCOME AVAILABLE FOR INVESTORS/OUSTANDING SHRARES
since denominator increased in FORWARD split the EPS will decrease
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- TAN for Partnership
- Treatment of Pension ?annuity returns on PMVY
- Soyabean hsn code and gst rate
- CA IPCC Registeration in 2012, Is my registration Active or Expired
- Free lancer income
- LTCG for Assmt year 26-27
- TDS related Query_Liquidated Damages
- NON- SUBMISSION OF LLP FORM 3
- Last year TDS Claim
- AY 26-27 ITR-4 FILING U/S 44-ADA
- Gst invoice numbering and delivery challan numbering
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Small dealers gst returns filing
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
