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P15-8 Price Dilution [LO3] Left Turn, Inc., has 126,000 shares of stock outstanding. Each share is...

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

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jeff jeffy answered 2 years ago
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