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Market price of share after bonus issue

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Querist : Anonymous

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Querist : Anonymous (Querist)
08 December 2011
a company have 1000 shares of 10each & EAT 200,000/- so EPS = 200000/1000 i.e. 200,& its p/e ratio 10, so MPS =200*10 i.e 2000,

if company issue bonus share in the ratio 1:1 then????

A)market price per share will change & P/E ratio remain same

OR

B)market price remain same & P/E ratio will change


urgent!
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Aditya Maheshwari

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Aditya Maheshwari (Expert)
08 December 2011 Market price will become half of the previous price.
PE ratio will remain same.
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Querist : Anonymous

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Querist : Anonymous (Querist)
08 December 2011 thanks sir


but i want 1 more suggestion
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Aditya Maheshwari

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Aditya Maheshwari (Expert)
09 December 2011 Wat suggestion?
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Querist : Anonymous

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Querist : Anonymous (Querist)
09 December 2011 i mean one more reply from any other expert

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