But sooner or later the dilution will hurt earnings and shareholders will pay a price.
The answer is because raising more is excessive dilution, and dilution is the bane of returns.
This will result in a 100.00% dilution for the purchasers of stock in this offering.
It has been redeeming stock because, Harary insists, it was a good value and reduced dilution.
The biggest obstacle to these co-branded or franchised offerings is the danger of brand dilution.
Would our companies become more capital efficient, less willing to take on dilution with bigger rounds?
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We use the Treasury Stock method to determine the net impact of option dilution.
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This will result in a 68.00% dilution for purchasers of stock in this offering.
Dilution of stock ownership can occur when managers exercise their rights (Sigler, 2009, p. 764).
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The dilution faced by original investors has been considerable and has constrained the stock price.
But a major dilution of shares last year has turned investors off to Petrobras.
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They worried about fare-yield dilution, traffic, fuel costs, wage negotiations -- the usual stuff.
Mr Armani's hotel plans are altogether more ambitious, and the danger of brand dilution much greater.
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That reduced dilution but exposed the companies to enormous risk if their share price fell.
One possibility was the potential dilution from outstanding options and warrants from previous financings.
Not that long ago, most cities considered the solution to pollution to be dilution.
That risks a toxic cycle, with each slide prompting further dilution and a further fall.
But his dilution of spending cuts and of a controversial labour-law reform has looked like weakness.
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Reducing net debt will boost equity value in the absence of any dilution from the capital raises.
The main problem, he says, is priority dilution: emergencies that delay attention to your most important activities.
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This dilution will more than likely take the form of reduced earnings potential on a per share basis.
Half of Microsoft's cash flow from operations is dedicated to share repurchases to counter the dilution from options.
Reynolds never sold any of its stake in Targacept, but dilution has lowered its equity interest to 4%.
Yet that is all the more reason to worry about the dilution or destruction of Virgin's brand capital.
He estimated earnings dilution of 4.3% for BNP Paribas, 6.6% for Societe Generale and 11.5% for Credit Agricole.
The problem with this largesse is that it consumes so much cash flow to keep a lid on dilution.
Such dilution appears unavoidable in order for the company to continue its operations.
The company expects further dilution of 3-4 cents a share in FY 2012, and 1-2 cents in FY 2013.
The dilution in USL's shares has made it difficult to sell equity to British liquor maker Diageo PLC.
The board and executives debated for hours about the correct balance between financial discipline, dilution and higher investment capital.
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