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