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.

---

Definitions:

Sensory Experience

The subjective experience of sensory information, which includes sight, sound, taste, touch, and smell.

Detached

Showing a lack of emotional involvement or personal interest; impartial or disinterested.

Out Of Body Experience

A phenomenon where a person feels as though they are observing themselves from a location outside their physical body.

Borderline Personality Disorder

A mental health disorder characterized by unstable moods, behaviors, and relationships, with symptoms often including emotional instability.