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Strategies & Market Trends : Value Investing

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To: Grommit who wrote (10429)4/26/2000 9:53:00 AM
From: 16bit  Read Replies (1) of 79010
 
Grommit,

What does "or additional new Ford shares equivalent to the cash value" mean? Do you have any idea of how the equivalent cash value will be determined? If the stock is at $60 the day before the distribution does that mean you could get $20 or 1/3 share (20/60) or would it be 1/2 share (20/(60-20))? Also, if a large number of shareholders take additional shares might this reduce the dividend per share? It might be hard to maintain the $2.00 per share dividend if the number of shares increases by 1/3 to 1/2. Just some thoughts.

Byron
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