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Doubt

srinivas (profeesional) (93 Points)

20 October 2014

many of share holdrs measure company performance based on EPS but my doubt is when a compny issue bonus share then EPS will decrese in that case how to measure?

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PSPSPS (Practicing) (1344 Points)
Replied 20 October 2014

Bonus Shares are an Addition to the Shares of the Shareholder for Free ( It Increases the Wealthof the S/H) In such case if you calculate the ROI it will come to same or even you will find the ROI of the Investor would be Higher compared to the Previous.