The article discusses issues related to variations in rate of return of stocks under re-capitalization. Share returns are commonly adjusted for re-capitalization by distributing the difference between market and exercise prices over the number of shares. Re-capitalization is said to occur when the total amount of equity capital or number of shares in a firm changes. New issues usually take the form of bonus issues or new paid-up issues called rights issues, which do not change the amount of equity.
Corporations, Finance, Recapitalization, rate of return, capital investments
Asia Pacific Journal of Management
Springer Verlag (Germany)
ARIFF, Mohamed and Kian Guan LIM.
The rate of return under re-capitalization: A note. (1988). Asia Pacific Journal of Management. 6, (1), 141-147. Research Collection Lee Kong Chian School Of Business.
Available at: http://ink.library.smu.edu.sg/lkcsb_research/4982