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Dilution of Earnings

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Which of the following activities is not a service provided by investment bankers?
Underwriting initial public offerings
Raising capital via mutual fund offerings
Advising in mergers
Advising on restructurings

Dilution of earnings occurs because ______.
a new issue of common stock creates more shares outstanding which reduces earnings per share temporarily
the company suffers a decline in earnings after taxes
the investment banker collects an underwriting fee
a temporary weakness in a stock, based on a proposed issue of additional shares is overcome

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# 5. Which of the following activities is not a service provided by investment bankers?

A) Underwriting initial public offerings

B) Raising capital via mutual fund offerings

C) Advising in mergers

D) Advising on restructurings

Answer - D

Explanation: Investment bankers provide a myriad of finance-related services, including underwriting, raising capital for companies by issuing equity or debt securities and ...

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