Catherine owns 100 shares in Telstra Inc. Telstra has 20 million shares outstanding that are trading at $8.5 each. Telstra has decided to place 3 million shares to a group of hedge funds at $6.5 each. Based only on the information above, the wealth transfer suffered by Catherine due to this private placement is closest to

$31.25

$16.71

$23.50

$26.09

None of the other answers are correct.