SlideShare a Scribd company logo
1 of 1
Download to read offline
a) With the help of a figure explain when the NPV and IRR rules would lead to different and
similar project investment decisions for a CFO. [Capital Structure]
b) Some CEOs/CFOs are concerned that issuing shares will have a negative impact on their share
price because of the dilution in the earnings per share. (i) Explain what is meant by dilution in
the earnings per share. (ii) Will issuing shares always lead to a dilution in earnings per share?
Explain.

More Related Content

More from ankkarao9652

a) Si la tasa de los fondos federales estuviera por debajo del nivel.pdf
a) Si la tasa de los fondos federales estuviera por debajo del nivel.pdfa) Si la tasa de los fondos federales estuviera por debajo del nivel.pdf
a) Si la tasa de los fondos federales estuviera por debajo del nivel.pdfankkarao9652
 
a) Is f(x,y) a proper probability density function Show workb) Wh.pdf
a) Is f(x,y) a proper probability density function Show workb) Wh.pdfa) Is f(x,y) a proper probability density function Show workb) Wh.pdf
a) Is f(x,y) a proper probability density function Show workb) Wh.pdfankkarao9652
 
a) In the Serba Dinamik Holdings Bhd (SDHB) case context, what are t.pdf
a) In the Serba Dinamik Holdings Bhd (SDHB) case context, what are t.pdfa) In the Serba Dinamik Holdings Bhd (SDHB) case context, what are t.pdf
a) In the Serba Dinamik Holdings Bhd (SDHB) case context, what are t.pdfankkarao9652
 
A) How much less do each of these firms earn in the Nash equilibrium.pdf
A) How much less do each of these firms earn in the Nash equilibrium.pdfA) How much less do each of these firms earn in the Nash equilibrium.pdf
A) How much less do each of these firms earn in the Nash equilibrium.pdfankkarao9652
 
According to classical economistsSelect oneO a. The velocity.pdf
According to classical economistsSelect oneO a. The velocity.pdfAccording to classical economistsSelect oneO a. The velocity.pdf
According to classical economistsSelect oneO a. The velocity.pdfankkarao9652
 
Access a governments CAFR (or use the one obtained in Learning Plan .pdf
Access a governments CAFR (or use the one obtained in Learning Plan .pdfAccess a governments CAFR (or use the one obtained in Learning Plan .pdf
Access a governments CAFR (or use the one obtained in Learning Plan .pdfankkarao9652
 
ABC Oil Exploration was undergoing a financial statement audit. The .pdf
ABC Oil Exploration was undergoing a financial statement audit. The .pdfABC Oil Exploration was undergoing a financial statement audit. The .pdf
ABC Oil Exploration was undergoing a financial statement audit. The .pdfankkarao9652
 
ABBC Y. 805060T1102540y210250r=0.04 Find npv and which Project is bett.pdf
ABBC Y. 805060T1102540y210250r=0.04 Find npv and which Project is bett.pdfABBC Y. 805060T1102540y210250r=0.04 Find npv and which Project is bett.pdf
ABBC Y. 805060T1102540y210250r=0.04 Find npv and which Project is bett.pdfankkarao9652
 
A2-3. Imagine an economy that keeps all of its money in the form of .pdf
A2-3. Imagine an economy that keeps all of its money in the form of .pdfA2-3. Imagine an economy that keeps all of its money in the form of .pdf
A2-3. Imagine an economy that keeps all of its money in the form of .pdfankkarao9652
 
Aaron Feuerstein, presidente de Malden Mills, celebr� su cumplea�os .pdf
Aaron Feuerstein, presidente de Malden Mills, celebr� su cumplea�os .pdfAaron Feuerstein, presidente de Malden Mills, celebr� su cumplea�os .pdf
Aaron Feuerstein, presidente de Malden Mills, celebr� su cumplea�os .pdfankkarao9652
 
A.) En vida, casi todos los caracoles (Clase Gastropoda) construyen .pdf
A.) En vida, casi todos los caracoles (Clase Gastropoda) construyen .pdfA.) En vida, casi todos los caracoles (Clase Gastropoda) construyen .pdf
A.) En vida, casi todos los caracoles (Clase Gastropoda) construyen .pdfankkarao9652
 
A U.S. firm holds an asset in Israel and faces the following scenari.pdf
A U.S. firm holds an asset in Israel and faces the following scenari.pdfA U.S. firm holds an asset in Israel and faces the following scenari.pdf
A U.S. firm holds an asset in Israel and faces the following scenari.pdfankkarao9652
 
A. Write an application where the main method holds two double varia.pdf
A. Write an application where the main method holds two double varia.pdfA. Write an application where the main method holds two double varia.pdf
A. Write an application where the main method holds two double varia.pdfankkarao9652
 
A. What must be true for the transcription of the trp operon to be a.pdf
A. What must be true for the transcription of the trp operon to be a.pdfA. What must be true for the transcription of the trp operon to be a.pdf
A. What must be true for the transcription of the trp operon to be a.pdfankkarao9652
 
a. Using the data from the table, for all death calculate 1) The pr.pdf
a. Using the data from the table, for all death calculate 1) The pr.pdfa. Using the data from the table, for all death calculate 1) The pr.pdf
a. Using the data from the table, for all death calculate 1) The pr.pdfankkarao9652
 
A. SupuestosB. L�neas de baseC. ProcesosD. Limit.pdf
A. SupuestosB. L�neas de baseC. ProcesosD. Limit.pdfA. SupuestosB. L�neas de baseC. ProcesosD. Limit.pdf
A. SupuestosB. L�neas de baseC. ProcesosD. Limit.pdfankkarao9652
 
a. Si las personas que viven en alg�n lugar de la galaxia A observan.pdf
a. Si las personas que viven en alg�n lugar de la galaxia A observan.pdfa. Si las personas que viven en alg�n lugar de la galaxia A observan.pdf
a. Si las personas que viven en alg�n lugar de la galaxia A observan.pdfankkarao9652
 
a. Los procesos para producir penicilina y queso azul utilizan el ho.pdf
a. Los procesos para producir penicilina y queso azul utilizan el ho.pdfa. Los procesos para producir penicilina y queso azul utilizan el ho.pdf
a. Los procesos para producir penicilina y queso azul utilizan el ho.pdfankkarao9652
 

More from ankkarao9652 (20)

a) Si la tasa de los fondos federales estuviera por debajo del nivel.pdf
a) Si la tasa de los fondos federales estuviera por debajo del nivel.pdfa) Si la tasa de los fondos federales estuviera por debajo del nivel.pdf
a) Si la tasa de los fondos federales estuviera por debajo del nivel.pdf
 
a) Is f(x,y) a proper probability density function Show workb) Wh.pdf
a) Is f(x,y) a proper probability density function Show workb) Wh.pdfa) Is f(x,y) a proper probability density function Show workb) Wh.pdf
a) Is f(x,y) a proper probability density function Show workb) Wh.pdf
 
a) In the Serba Dinamik Holdings Bhd (SDHB) case context, what are t.pdf
a) In the Serba Dinamik Holdings Bhd (SDHB) case context, what are t.pdfa) In the Serba Dinamik Holdings Bhd (SDHB) case context, what are t.pdf
a) In the Serba Dinamik Holdings Bhd (SDHB) case context, what are t.pdf
 
A) How much less do each of these firms earn in the Nash equilibrium.pdf
A) How much less do each of these firms earn in the Nash equilibrium.pdfA) How much less do each of these firms earn in the Nash equilibrium.pdf
A) How much less do each of these firms earn in the Nash equilibrium.pdf
 
According to classical economistsSelect oneO a. The velocity.pdf
According to classical economistsSelect oneO a. The velocity.pdfAccording to classical economistsSelect oneO a. The velocity.pdf
According to classical economistsSelect oneO a. The velocity.pdf
 
Access a governments CAFR (or use the one obtained in Learning Plan .pdf
Access a governments CAFR (or use the one obtained in Learning Plan .pdfAccess a governments CAFR (or use the one obtained in Learning Plan .pdf
Access a governments CAFR (or use the one obtained in Learning Plan .pdf
 
ABC Oil Exploration was undergoing a financial statement audit. The .pdf
ABC Oil Exploration was undergoing a financial statement audit. The .pdfABC Oil Exploration was undergoing a financial statement audit. The .pdf
ABC Oil Exploration was undergoing a financial statement audit. The .pdf
 
ABBC Y. 805060T1102540y210250r=0.04 Find npv and which Project is bett.pdf
ABBC Y. 805060T1102540y210250r=0.04 Find npv and which Project is bett.pdfABBC Y. 805060T1102540y210250r=0.04 Find npv and which Project is bett.pdf
ABBC Y. 805060T1102540y210250r=0.04 Find npv and which Project is bett.pdf
 
A2-3. Imagine an economy that keeps all of its money in the form of .pdf
A2-3. Imagine an economy that keeps all of its money in the form of .pdfA2-3. Imagine an economy that keeps all of its money in the form of .pdf
A2-3. Imagine an economy that keeps all of its money in the form of .pdf
 
Aaron Feuerstein, presidente de Malden Mills, celebr� su cumplea�os .pdf
Aaron Feuerstein, presidente de Malden Mills, celebr� su cumplea�os .pdfAaron Feuerstein, presidente de Malden Mills, celebr� su cumplea�os .pdf
Aaron Feuerstein, presidente de Malden Mills, celebr� su cumplea�os .pdf
 
A={0,1}.pdf
A={0,1}.pdfA={0,1}.pdf
A={0,1}.pdf
 
A=(b)(2)R2.pdf
A=(b)(2)R2.pdfA=(b)(2)R2.pdf
A=(b)(2)R2.pdf
 
A.) En vida, casi todos los caracoles (Clase Gastropoda) construyen .pdf
A.) En vida, casi todos los caracoles (Clase Gastropoda) construyen .pdfA.) En vida, casi todos los caracoles (Clase Gastropoda) construyen .pdf
A.) En vida, casi todos los caracoles (Clase Gastropoda) construyen .pdf
 
A U.S. firm holds an asset in Israel and faces the following scenari.pdf
A U.S. firm holds an asset in Israel and faces the following scenari.pdfA U.S. firm holds an asset in Israel and faces the following scenari.pdf
A U.S. firm holds an asset in Israel and faces the following scenari.pdf
 
A. Write an application where the main method holds two double varia.pdf
A. Write an application where the main method holds two double varia.pdfA. Write an application where the main method holds two double varia.pdf
A. Write an application where the main method holds two double varia.pdf
 
A. What must be true for the transcription of the trp operon to be a.pdf
A. What must be true for the transcription of the trp operon to be a.pdfA. What must be true for the transcription of the trp operon to be a.pdf
A. What must be true for the transcription of the trp operon to be a.pdf
 
a. Using the data from the table, for all death calculate 1) The pr.pdf
a. Using the data from the table, for all death calculate 1) The pr.pdfa. Using the data from the table, for all death calculate 1) The pr.pdf
a. Using the data from the table, for all death calculate 1) The pr.pdf
 
A. SupuestosB. L�neas de baseC. ProcesosD. Limit.pdf
A. SupuestosB. L�neas de baseC. ProcesosD. Limit.pdfA. SupuestosB. L�neas de baseC. ProcesosD. Limit.pdf
A. SupuestosB. L�neas de baseC. ProcesosD. Limit.pdf
 
a. Si las personas que viven en alg�n lugar de la galaxia A observan.pdf
a. Si las personas que viven en alg�n lugar de la galaxia A observan.pdfa. Si las personas que viven en alg�n lugar de la galaxia A observan.pdf
a. Si las personas que viven en alg�n lugar de la galaxia A observan.pdf
 
a. Los procesos para producir penicilina y queso azul utilizan el ho.pdf
a. Los procesos para producir penicilina y queso azul utilizan el ho.pdfa. Los procesos para producir penicilina y queso azul utilizan el ho.pdf
a. Los procesos para producir penicilina y queso azul utilizan el ho.pdf
 

Recently uploaded

ECONOMIC CONTEXT - PAPER 1 Q3: NEWSPAPERS.pptx
ECONOMIC CONTEXT - PAPER 1 Q3: NEWSPAPERS.pptxECONOMIC CONTEXT - PAPER 1 Q3: NEWSPAPERS.pptx
ECONOMIC CONTEXT - PAPER 1 Q3: NEWSPAPERS.pptxiammrhaywood
 
Inclusivity Essentials_ Creating Accessible Websites for Nonprofits .pdf
Inclusivity Essentials_ Creating Accessible Websites for Nonprofits .pdfInclusivity Essentials_ Creating Accessible Websites for Nonprofits .pdf
Inclusivity Essentials_ Creating Accessible Websites for Nonprofits .pdfTechSoup
 
Concurrency Control in Database Management system
Concurrency Control in Database Management systemConcurrency Control in Database Management system
Concurrency Control in Database Management systemChristalin Nelson
 
THEORIES OF ORGANIZATION-PUBLIC ADMINISTRATION
THEORIES OF ORGANIZATION-PUBLIC ADMINISTRATIONTHEORIES OF ORGANIZATION-PUBLIC ADMINISTRATION
THEORIES OF ORGANIZATION-PUBLIC ADMINISTRATIONHumphrey A Beña
 
AMERICAN LANGUAGE HUB_Level2_Student'sBook_Answerkey.pdf
AMERICAN LANGUAGE HUB_Level2_Student'sBook_Answerkey.pdfAMERICAN LANGUAGE HUB_Level2_Student'sBook_Answerkey.pdf
AMERICAN LANGUAGE HUB_Level2_Student'sBook_Answerkey.pdfphamnguyenenglishnb
 
Earth Day Presentation wow hello nice great
Earth Day Presentation wow hello nice greatEarth Day Presentation wow hello nice great
Earth Day Presentation wow hello nice greatYousafMalik24
 
Science 7 Quarter 4 Module 2: Natural Resources.pptx
Science 7 Quarter 4 Module 2: Natural Resources.pptxScience 7 Quarter 4 Module 2: Natural Resources.pptx
Science 7 Quarter 4 Module 2: Natural Resources.pptxMaryGraceBautista27
 
What is Model Inheritance in Odoo 17 ERP
What is Model Inheritance in Odoo 17 ERPWhat is Model Inheritance in Odoo 17 ERP
What is Model Inheritance in Odoo 17 ERPCeline George
 
Proudly South Africa powerpoint Thorisha.pptx
Proudly South Africa powerpoint Thorisha.pptxProudly South Africa powerpoint Thorisha.pptx
Proudly South Africa powerpoint Thorisha.pptxthorishapillay1
 
ENGLISH6-Q4-W3.pptxqurter our high choom
ENGLISH6-Q4-W3.pptxqurter our high choomENGLISH6-Q4-W3.pptxqurter our high choom
ENGLISH6-Q4-W3.pptxqurter our high choomnelietumpap1
 
Judging the Relevance and worth of ideas part 2.pptx
Judging the Relevance  and worth of ideas part 2.pptxJudging the Relevance  and worth of ideas part 2.pptx
Judging the Relevance and worth of ideas part 2.pptxSherlyMaeNeri
 
HỌC TỐT TIẾNG ANH 11 THEO CHƯƠNG TRÌNH GLOBAL SUCCESS ĐÁP ÁN CHI TIẾT - CẢ NĂ...
HỌC TỐT TIẾNG ANH 11 THEO CHƯƠNG TRÌNH GLOBAL SUCCESS ĐÁP ÁN CHI TIẾT - CẢ NĂ...HỌC TỐT TIẾNG ANH 11 THEO CHƯƠNG TRÌNH GLOBAL SUCCESS ĐÁP ÁN CHI TIẾT - CẢ NĂ...
HỌC TỐT TIẾNG ANH 11 THEO CHƯƠNG TRÌNH GLOBAL SUCCESS ĐÁP ÁN CHI TIẾT - CẢ NĂ...Nguyen Thanh Tu Collection
 
Transaction Management in Database Management System
Transaction Management in Database Management SystemTransaction Management in Database Management System
Transaction Management in Database Management SystemChristalin Nelson
 
Grade 9 Quarter 4 Dll Grade 9 Quarter 4 DLL.pdf
Grade 9 Quarter 4 Dll Grade 9 Quarter 4 DLL.pdfGrade 9 Quarter 4 Dll Grade 9 Quarter 4 DLL.pdf
Grade 9 Quarter 4 Dll Grade 9 Quarter 4 DLL.pdfJemuel Francisco
 
Field Attribute Index Feature in Odoo 17
Field Attribute Index Feature in Odoo 17Field Attribute Index Feature in Odoo 17
Field Attribute Index Feature in Odoo 17Celine George
 
Karra SKD Conference Presentation Revised.pptx
Karra SKD Conference Presentation Revised.pptxKarra SKD Conference Presentation Revised.pptx
Karra SKD Conference Presentation Revised.pptxAshokKarra1
 
Visit to a blind student's school🧑‍🦯🧑‍🦯(community medicine)
Visit to a blind student's school🧑‍🦯🧑‍🦯(community medicine)Visit to a blind student's school🧑‍🦯🧑‍🦯(community medicine)
Visit to a blind student's school🧑‍🦯🧑‍🦯(community medicine)lakshayb543
 
Global Lehigh Strategic Initiatives (without descriptions)
Global Lehigh Strategic Initiatives (without descriptions)Global Lehigh Strategic Initiatives (without descriptions)
Global Lehigh Strategic Initiatives (without descriptions)cama23
 

Recently uploaded (20)

ECONOMIC CONTEXT - PAPER 1 Q3: NEWSPAPERS.pptx
ECONOMIC CONTEXT - PAPER 1 Q3: NEWSPAPERS.pptxECONOMIC CONTEXT - PAPER 1 Q3: NEWSPAPERS.pptx
ECONOMIC CONTEXT - PAPER 1 Q3: NEWSPAPERS.pptx
 
Inclusivity Essentials_ Creating Accessible Websites for Nonprofits .pdf
Inclusivity Essentials_ Creating Accessible Websites for Nonprofits .pdfInclusivity Essentials_ Creating Accessible Websites for Nonprofits .pdf
Inclusivity Essentials_ Creating Accessible Websites for Nonprofits .pdf
 
Concurrency Control in Database Management system
Concurrency Control in Database Management systemConcurrency Control in Database Management system
Concurrency Control in Database Management system
 
FINALS_OF_LEFT_ON_C'N_EL_DORADO_2024.pptx
FINALS_OF_LEFT_ON_C'N_EL_DORADO_2024.pptxFINALS_OF_LEFT_ON_C'N_EL_DORADO_2024.pptx
FINALS_OF_LEFT_ON_C'N_EL_DORADO_2024.pptx
 
THEORIES OF ORGANIZATION-PUBLIC ADMINISTRATION
THEORIES OF ORGANIZATION-PUBLIC ADMINISTRATIONTHEORIES OF ORGANIZATION-PUBLIC ADMINISTRATION
THEORIES OF ORGANIZATION-PUBLIC ADMINISTRATION
 
AMERICAN LANGUAGE HUB_Level2_Student'sBook_Answerkey.pdf
AMERICAN LANGUAGE HUB_Level2_Student'sBook_Answerkey.pdfAMERICAN LANGUAGE HUB_Level2_Student'sBook_Answerkey.pdf
AMERICAN LANGUAGE HUB_Level2_Student'sBook_Answerkey.pdf
 
Earth Day Presentation wow hello nice great
Earth Day Presentation wow hello nice greatEarth Day Presentation wow hello nice great
Earth Day Presentation wow hello nice great
 
Science 7 Quarter 4 Module 2: Natural Resources.pptx
Science 7 Quarter 4 Module 2: Natural Resources.pptxScience 7 Quarter 4 Module 2: Natural Resources.pptx
Science 7 Quarter 4 Module 2: Natural Resources.pptx
 
What is Model Inheritance in Odoo 17 ERP
What is Model Inheritance in Odoo 17 ERPWhat is Model Inheritance in Odoo 17 ERP
What is Model Inheritance in Odoo 17 ERP
 
Proudly South Africa powerpoint Thorisha.pptx
Proudly South Africa powerpoint Thorisha.pptxProudly South Africa powerpoint Thorisha.pptx
Proudly South Africa powerpoint Thorisha.pptx
 
YOUVE GOT EMAIL_FINALS_EL_DORADO_2024.pptx
YOUVE GOT EMAIL_FINALS_EL_DORADO_2024.pptxYOUVE GOT EMAIL_FINALS_EL_DORADO_2024.pptx
YOUVE GOT EMAIL_FINALS_EL_DORADO_2024.pptx
 
ENGLISH6-Q4-W3.pptxqurter our high choom
ENGLISH6-Q4-W3.pptxqurter our high choomENGLISH6-Q4-W3.pptxqurter our high choom
ENGLISH6-Q4-W3.pptxqurter our high choom
 
Judging the Relevance and worth of ideas part 2.pptx
Judging the Relevance  and worth of ideas part 2.pptxJudging the Relevance  and worth of ideas part 2.pptx
Judging the Relevance and worth of ideas part 2.pptx
 
HỌC TỐT TIẾNG ANH 11 THEO CHƯƠNG TRÌNH GLOBAL SUCCESS ĐÁP ÁN CHI TIẾT - CẢ NĂ...
HỌC TỐT TIẾNG ANH 11 THEO CHƯƠNG TRÌNH GLOBAL SUCCESS ĐÁP ÁN CHI TIẾT - CẢ NĂ...HỌC TỐT TIẾNG ANH 11 THEO CHƯƠNG TRÌNH GLOBAL SUCCESS ĐÁP ÁN CHI TIẾT - CẢ NĂ...
HỌC TỐT TIẾNG ANH 11 THEO CHƯƠNG TRÌNH GLOBAL SUCCESS ĐÁP ÁN CHI TIẾT - CẢ NĂ...
 
Transaction Management in Database Management System
Transaction Management in Database Management SystemTransaction Management in Database Management System
Transaction Management in Database Management System
 
Grade 9 Quarter 4 Dll Grade 9 Quarter 4 DLL.pdf
Grade 9 Quarter 4 Dll Grade 9 Quarter 4 DLL.pdfGrade 9 Quarter 4 Dll Grade 9 Quarter 4 DLL.pdf
Grade 9 Quarter 4 Dll Grade 9 Quarter 4 DLL.pdf
 
Field Attribute Index Feature in Odoo 17
Field Attribute Index Feature in Odoo 17Field Attribute Index Feature in Odoo 17
Field Attribute Index Feature in Odoo 17
 
Karra SKD Conference Presentation Revised.pptx
Karra SKD Conference Presentation Revised.pptxKarra SKD Conference Presentation Revised.pptx
Karra SKD Conference Presentation Revised.pptx
 
Visit to a blind student's school🧑‍🦯🧑‍🦯(community medicine)
Visit to a blind student's school🧑‍🦯🧑‍🦯(community medicine)Visit to a blind student's school🧑‍🦯🧑‍🦯(community medicine)
Visit to a blind student's school🧑‍🦯🧑‍🦯(community medicine)
 
Global Lehigh Strategic Initiatives (without descriptions)
Global Lehigh Strategic Initiatives (without descriptions)Global Lehigh Strategic Initiatives (without descriptions)
Global Lehigh Strategic Initiatives (without descriptions)
 

a) With the help of a figure explain when the NPV and IRR rules woul.pdf

  • 1. a) With the help of a figure explain when the NPV and IRR rules would lead to different and similar project investment decisions for a CFO. [Capital Structure] b) Some CEOs/CFOs are concerned that issuing shares will have a negative impact on their share price because of the dilution in the earnings per share. (i) Explain what is meant by dilution in the earnings per share. (ii) Will issuing shares always lead to a dilution in earnings per share? Explain.