Investopedia seems to agree with me otherwise using your approach in their example the dilution would be 100% (obviously wrong) rather than 50%. Anyway that is the way we did this sort of analysis when I took the Gard Dip. of Applied Finance and Investment at the Securities Institute of Australia about 20 years ago.
loki (my grey cells are vanishing at a rapid rate, but despite approaching my 70s there are still a few left.)
BDR Price at posting:
7.1¢ Sentiment: None Disclosure: Held
