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8 8 Corporate finance suggests that dilution of earnings per share (EPS) should be irrelevant to firm value. Still, CFOs regard earnings dilution a prime

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8 8 Corporate finance suggests that dilution of earnings per share (EPS) should be irrelevant to firm value. Still, CFOs regard earnings dilution a prime determinant of whether to issue equity. How could agency concerns explain this apparent paradox? Provide a BRIEF motivation

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