Dilution Effect On EPS

This question practices the link between capital structure and per share metrics, especially how a change in share count affects earnings per share and how any cash raised may also affect net income. Candidates need to think through dilution, the impact of incremental cash or financing proceeds, and why a higher share count can pressure EPS even when total earnings do not change. Interviewers ask this because EPS is a core valuation and transaction metric in investment banking, and bankers are expected to understand how equity issuance, financing decisions, and acquisition financing can make a deal accretive or dilutive.