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Larry also holds 2,000 shares of common stock in a company that only has 20,000 shares outstanding. Currently, the company's stock is valued at $48.00
Larry also holds 2,000 shares of common stock in a company that only has 20,000 shares outstanding. Currently, the company's stock is valued at $48.00 per share. The company needs to raise new capital to invest in its future production activities. The company is anticipating issuing 5,000 new shares at a price of $38.40 per share. Larry worries about the value of his investment. Larry's current investment in the company is worth Larry makes no additional investments in the company, then his investment will be worth If the company issues its new shares and This scenario is an example of dilution Larry could be protected if the firm's corporate charter includes a preemptive right oon If Larry exercises the provisions in the corporate charter to protect his stake, his investment value in the firm will become
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