Question
Left Turn, Inc., has 126,000 shares of stock outstanding. Each share is worth $90, so the company's market value of equity is $11,340,000. Required: (a)
Left Turn, Inc., has 126,000 shares of stock outstanding. Each share is worth $90, so the company's market value of equity is $11,340,000. |
Required: |
(a) | Suppose the firm issues 21,000 new shares at the price of $90, what will the effect be of this offering price on the existing price per share? (Do not round your intermediate calculations.) |
(Click to select)0.25-0.2518.500.0036.00
(b) | Suppose the firm issues 21,000 new shares at the price of $77, what will the effect be of this offering price on the existing price per share? (Do not round your intermediate calculations.) |
(Click to select)-1.7633.40-1.8615.40-1.95
(c) | Suppose the firm issues 21,000 new shares at the price of $62, what will the effect be of this offering price on the existing price per share? (Do not round your intermediate calculations.) |
(Click to select)-4.20-4.0012.40-3.8030.40
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