Maxwell Corp

question 101

Multiple Choice

Maxwell Corp. is coming to the market with a new offering of 300,000 shares, at $25 to the public. Maxwell will receive $22 per share. The firm has 1 million shares outstanding and earnings of $6 million. What is the amount of dilution in earnings per share?

• A) $2.00
• B) $1.38
• C) $1.77
• D) no dilution occurs since new money is received by Maxwell

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Definitions:

Intensity

The degree of strength, force, or energy with which an action is performed or an attribute is possessed.

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Describes the preferred way an individual expresses themselves and receives information from others, which can include verbal, non-verbal, written, and digital forms.

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The ability of a person or system to adapt or be adapted to many different functions or activities.

Interpersonal Relations

The way in which individuals interact, communicate, and build relationships with each other.