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

question 95

True/False

When a firm issues new stock, it always results in dilution of earnings in the long run.

---

Definitions:

Adaptive Organisation

An organization capable of adjusting its strategies, structures, and processes in response to changing internal and external environments to remain viable and competitive.

High-quality Goods

Products that meet or exceed customer expectations in terms of performance, durability, and reliability, often as a result of superior materials, craftsmanship, and quality control processes.

Strategic Management Process

The Strategic Management Process is a continuous cycle of planning, monitoring, analysis, and assessment of all that is necessary for an organization to meet its goals and objectives.