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Wed 20 Jun, 2007 06:50 am
Suppose a company released 10,000 shares at the beginning of the year for 9 months
Now it also released 10,000 more shares for the rest 3 months
how much the company is going to earn on the last 3 months ? the company will earn on 10,000 or 20,000 shares on the last three months ?
Dividend may or may not be reduced depending on how the market values the company and the profits the buyer expects the new capital to earn.