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Damron, Incorporated, has 250,000 shares of stock outstanding. Each share is worth $81, so the companys market value of equity is $20,250,000. Suppose the firm

Damron, Incorporated, has 250,000 shares of stock outstanding. Each share is worth $81, so the companys market value of equity is $20,250,000. Suppose the firm issues 40,000 new shares at the following prices: $81, $76, and $68. What will be the ex-rights price and the effect of each of these alternative offering prices on the existing price per share? (Leave no cells blank; if there is no effect select "No change" from the dropdown and enter "0".

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