Question
A company has a current market capitalization of $10 million, and 500,000 outstanding shares. The company plans to issue 50,000 new shares to raise additional
A company has a current market capitalization of $10 million, and 500,000 outstanding shares. The company plans to issue 50,000 new shares to raise additional funds for a new project. If the company's stock is currently trading at $25 per share, what will be the effect of the new share issue on the company's stock price?
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Bank Management and Financial Services
Authors: Peter Rose, Sylvia Hudgins
9th edition
78034671, 978-0078034671
