Francis Corp. is coming to the market with a new offering of 1,000,000 shares, at $20 to the public. Francis Corp. will

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answerhappygod
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Francis Corp. is coming to the market with a new offering of 1,000,000 shares, at $20 to the public. Francis Corp. will

Post by answerhappygod »

Francis Corp. is coming to the market with a new offering of
1,000,000 shares, at $20 to the public. Francis Corp. will receive
$17 per share. The firm has 2 million shares outstanding and
earnings of $8 million. What is the amount of dilution in earnings
per share?
Select one:
a. $10.00
b. $3.00
c. $1.85
d. $1.33
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