1. You are a shareholder of a corporation. It has 50,000 shares of common stocks outstanding now. Its recent net profit was $100,000. The company intends to issue (sell) additional 10,000 shares of new common stocks at $100 per share. By selling them, the company can obtain $1,000,000 of cash for its new business project. The project is expected to increase its net profit by $20,000 in the next year. The company asks you to vote for this decision. Which one of the following should be your best criterion as a shareholder to decide whether to approve or reject this proposal?

The growth rate of the sales as the result of the new investment

The growth rate of net profit as the result of the new investment

The growth rate of the Earnings Per Share as the result of the investment

The growth rate of the Total Assets of the company as the result of the investment.

The growth rate of the Total Equity of the company as the result of the new investment.