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P15-8 Price Dilution [LO3] Left Turn, Inc., has 100,000 shares of stock outstanding. Each share is...

P15-8 Price Dilution [LO3]

Left Turn, Inc., has 100,000 shares of stock outstanding. Each share is worth $90, so the company's market value of equity is $9,000,000.
Required:
(a)

Suppose the firm issues 20,000 new shares at the price of $90, what will the effect be of this offering price on the existing price per share? (Do not round your intermediate calculations.)


      (Click to select)0.250.000.50-0.2518.00
  

(b)

Suppose the firm issues 20,000 new shares at the price of $79, what will the effect be of this offering price on the existing price per share? (Do not round your intermediate calculations.)


     (Click to select)15.80-1.92-1.83-1.74-2.20

(c)

Suppose the firm issues 20,000 new shares at the price of $59, what will the effect be of this offering price on the existing price per share? (Do not round your intermediate calculations.)


      (Click to select)11.80-5.17-6.20-5.43-4.91

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jeff jeffy answered 2 years ago
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