Assume a firm issued rights to fund a new project. If this project immediately increases the market value per share, then:

a. The earnings per share (EPS) will also immediately increase.

b. No dilution of ownership position can occur.

c. The shareholders will be worse off than before, whether or not they participate in the offering.

d. The firm has acted in the best interest of its-rights shareholders.

e. The book value per share had to remain constant.