Jensen, Inc., has 100,000 shares of stock outstanding. Each share is worth ($75,) so the companys market
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Jensen, Inc., has 100,000 shares of stock outstanding.
Each share is worth \($75,\) so the company’s market value of equity is \($7,500,000.\) Suppose the firm issues 20,000 new shares at the following prices: \($75,\) \($50,\) and \($25.\) What will the effect be of each of these alternative offering prices on the existing price per share?
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Related Book For 
Fundamentals Of Corporate Finance
ISBN: 9780072313000
5th Edition
Authors: Stephen A Ross, Randolph W Westerfield
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