I see a flaw in your calculation. In my view giving out dividend and raising money at the same time for a company with above average ROCE (signified by P/BV>1) is irrational. It is only done as a positive signaling mechanism to retail investors.
Taking your numbers, Price= 400, BVPS= 100, Total Outstanding Shares(OS)= 100. Lets say company makes a total profit of 100 at the end of the year, and the management just needs 100 for future investments.
Management has two options:
Option 1: Use 100 from profits to invest in future investments.
Total BV=10100; to keep P/BV at 4, price will increase to 404.
Option 2: Give out 100 as dividends and dilute 0.5% to raise 200.
Total BV=100*100-100+(0.5)400100=10100; and Total OS=100.5.
To keep P/PV at 4, price will increase to 402.
As compared to Option 1, the existing shareholders loose even after including the dividend (of 1) in the final share price of 402.
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