Which one of the following statements is correct concerning dilution related to a new project?
A) As long as the book value of a firm increases when a project is undertaken, the book value per share will remain constant.
B) As long as the market value of a firm increases when a project is undertaken, the market value per share will increase.
C) Even if the market value of a firm increases when a project is undertaken, the market value per share can decrease.
D) The proportionate ownership of each shareholder always remains constant when new projects are taken on.
E) The market price per share of stock tends to increase when the net present value of a project that is taken on is negative.
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