12. Which of the following statements are correct: A. Percentage ownership occurs with new issuance via rights offerings. B. Market value dilution occurs when the net present value of a project is negative. C. Market value dilution increases as the net present value of a project increases. D. Book value dilution has real impact on individual shareholders.

B. Market value dilution occurs when the net present value of a project is negative.

Explanation:

In the case when the net present value is negative that represent the firm would lose its investment made that automatically reduce the valuation of the business in near future so the market again determine the current stock price also there would be decrease in the market value of the stock so here the dilution would be taken place

Therefore the option B is correct

income statement is prepared in order to show the profits and loss of a business. in order to prepare the income statement she should collect all the income and expenses of the product with the cost of production.

answersituation analysis;