Left Turn, Inc., has 120,000 shares of stock outstanding. Each share is worth $94, so the company's

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Left Turn, Inc., has 120,000 shares of stock outstanding. Each share is worth $94, so the company's market value of equity is $11,280,000. Suppose the firm issues 25,000 new shares at the following prices: $94, $90, and $85. What will the effect be of each of these alternative offering prices on the existing price per share?

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Fundamentals of corporate finance

ISBN: 978-0073382395

9th edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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