Assume a Firm Issued Rights to Fund a New Project

Multiple Choice

Assume a firm issued rights to fund a new project.If this project immediately increases the market value per share,then:

A) no dilution of ownership position can occur.
B) the book value per share had to remain constant.
C) the EPS will also immediately increase.
D) the shareholders will be worse off than before,whether or not they participate in the offering.
E) the firm has acted in the best interest of its pre-rights shareholders.