I have this question: Maxwell Corp. is coming to the market with a new offering of 450,000 shares of stock at $22 to the public. Maxwell will receive $19.00 per share. The firm has one million shares outstanding and earnings of $6 million before recording the new issue. What is the amount of dilution in earnings per share.
I figured the current share price is $6.00, the new issue price is $4.14 and the dilution is $1.86 but that is wrong. Can you tell me what I am missing?
Recently Asked Questions
- Good day I'm currently studying Educational Law and Management through NWU Open Distance learning. I have to submit an assignment tomorrow and I'm having
- how can i design a training seminar for employees on dealing fairly with customers, what learning objectives can be covered to address this topic
- TheModelE extender fits with the2 inch heavy duty hitches. The contract calls for 198 ModelE extendersper week to be delivered in equal installments over the