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3. Price Dilution Crawford, Inc., has 155,000 shares of stock outstanding. Each share is worth $77, so the companys market value of equity is $11,937,000.
3. Price Dilution Crawford, Inc., has 155,000 shares of stock outstanding. Each share is worth $77, so the companys market value of equity is $11,937,000. Suppose the firm issues 30,000 new shares at the following prices: $77, $70, and $65. What will the effect be of each of these alternative offering prices on the existing price per share?
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