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a) With the help of a figure explain when the NPV and IRR rules would lead to different and similar project investment decisions for a
a) With the help of a figure explain when the NPV and IRR rules would lead to different and similar project investment decisions for a CFO. [Capital Structure]
b) Some CEOs/CFOs are concerned that issuing shares will have a negative impact on their share price because of the dilution in the earnings per share. (i) Explain what is meant by dilution in the earnings per share. (ii) Will issuing shares always lead to a dilution in earnings per share? Explain.
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