Question
Maxwell Corp. is coming to the market with a new offering of 450,000 shares of stock at $26 to the public. Maxwell will receive $19
Maxwell Corp. is coming to the market with a new offering of 450,000 shares of stock at $26 to the public. Maxwell will receive $19 per share. The firm has 1 million shares outstanding and earnings of $6 million. before recording the new issue. what is the amount of dilution in earnings per share
a) 1.86
b) 1.38
c)1.77
d) no dilution occurs since new money is received by maxwell
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Investment Science
Authors: David G. Luenberger
1st Edition
0195108094, 978-0195108095
