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Damron, Incorporated, has 246,000 shares of stock outstanding. Each share is worth $47, so the company's market value of equity is $11,562,000. Suppose the firm
Damron, Incorporated, has 246,000 shares of stock outstanding. Each share is worth $47, so the company's market value of equity is $11,562,000. Suppose the firm issues 40,000 new shares at the following prices: $47, $44, and $39. What will the effect be of each of these alternative offering prices on the existing price per share?
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