Orbit Ltd Has 30,000 Shares Outstanding and Earned $30,000 on Capital

Multiple Choice

Orbit Ltd. has 30,000 shares outstanding and earned $30,000 on capital invested of $90,000 last year. What is the likely impact of an investment opportunity to issue 10,000 more shares for $30,000 to earn an additional $14,000?

A) EPS will decrease and the stock price will fall
B) the new investment is relatively less profitable
C) the new investment is relatively more profitable
D) total profits will increase slightly but by not enough
E) the new capital invested will earn less per dollar