In: Finance
P15-8 Price Dilution [LO3]
Left Turn, Inc., has 126,000 shares of stock outstanding. Each share is worth $80, so the company's market value of equity is $10,080,000. |
Required: |
(a) |
Suppose the firm issues 18,000 new shares at the price of $80, what will the effect be of this offering price on the existing price per share? (Do not round your intermediate calculations.) |
(Click to
select)32.50-0.2548.000.250.00
(b) |
Suppose the firm issues 18,000 new shares at the price of $74, what will the effect be of this offering price on the existing price per share? (Do not round your intermediate calculations.) |
(Click to
select)46.80-0.79-0.75-0.7130.80
(c) |
Suppose the firm issues 18,000 new shares at the price of $58, what will the effect be of this offering price on the existing price per share? (Do not round your intermediate calculations.) |
(Click to
select)-2.75-2.8927.6043.60-2.61