Francis Corp. is coming to the market with a new offering of 1,000,000 shares, at $20 to the public. Francis Corp. will
Posted: Sun Jun 05, 2022 10:10 am
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
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