3. 8.

Price dilution [LO 15.3] Leongatha Furnishing Limited has 165 000 shares outstanding. Each share is worth $77, so the company’s market value of equity is $12 705 000. Suppose the firm issues 30 000 new shares at the following prices: $77, $73 and $65. What effect will each of these alternative offering prices have on the existing price per share?