Question
Left Turn, Inc., has 120,000 shares of stock outstanding. Each share is worth $120, so the company's market value of equity is $14,400,000. Required: (a)
Left Turn, Inc., has 120,000 shares of stock outstanding. Each share is worth $120, so the company's market value of equity is $14,400,000. |
Required: |
(a) | Suppose the firm issues 20,000 new shares at the price of $120, what will the effect be of this offering price on the existing price per share? (Do not round your intermediate calculations.) |
(Click to select)0.250.0048.0024.50-0.25
(b) | Suppose the firm issues 20,000 new shares at the price of $108, what will the effect be of this offering price on the existing price per share? (Do not round your intermediate calculations.) |
(Click to select)-1.80-1.7145.60-1.6321.60
(c) | Suppose the firm issues 20,000 new shares at the price of $86, what will the effect be of this offering price on the existing price per share? (Do not round your intermediate calculations.) |
(Click to select)-4.86-4.6141.20-5.1017.20
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