When a Firm Issues New Stock, It Always Results in a Dilution

question 103

True/False

When a firm issues new stock, it always results in a dilution of earnings in the long run.
When dilution occurs because of a new issue, it typically takes time for the new equity infusion to boost earnings per share, but this condition is temporary in most cases.

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Definitions:

Crucifixion

A method of capital punishment where the victim is tied or nailed to a large wooden cross and left to die; also a central symbol of Christianity related to Jesus Christ's execution.

Christ Enthroned

A depiction in Christian art of Jesus Christ seated on a throne as a ruler and judge, often surrounded by other biblical figures.

Entry into Jerusalem

A biblical event commemorated in Christianity where Jesus Christ enters Jerusalem, an event celebrated on Palm Sunday.

Christian Sarcophagus

A stone coffin often elaborately decorated, used in early Christian burials, featuring motifs and imagery from Christian iconography.