If a company issues new stock, this will always decrease book value per share.

Question

Quizplus · Accepted Answer

Issuing new stock will increase the total equity of the company, which in turn increases the denominator in the calculation of book value per share. Therefore, the book value per share may decrease or increase depending on various factors such as the price at which the new stock is issued, how the proceeds from the new stock are used, and the overall impact on the company's financial position.

If a Company Issues New Stock, This Will Always Decrease