Atlanta Ltd. has 40 million shares on issue with a current market share price of $5 per share. The company raises $15 million by placing 5 million shares at $3 each to a group of financial institutions that previously held no shares in the firm. As a result of this private placement,

Group of answer choices

(a) Old shareholders have their voting power diluted.

(b) There is a transfer of wealth from old shareholders to new shareholders.

(c) Old shareholders wealth is expected to drop from $200million to $191 million (to the nearest million dollars).

(d) Both (a) and (c)

(e) All of (a), (b), and (c)