Question
Left Turn, Inc., has 96,000 shares of stock outstanding. Each share is worth $80, so the company's market value of equity is $7,680,000. (a) Suppose
Left Turn, Inc., has 96,000 shares of stock outstanding. Each share is worth $80, so the company's market value of equity is $7,680,000.
| (a) | Suppose the firm issues 16,000 new shares at the price of $80, what will the effect be of this offering price on the existing price per share? (Do not round your intermediate calculations.) |
| (b) | Suppose the firm issues 16,000 new shares at the price of $73, what will the effect be of this offering price on the existing price per share? (Do not round your intermediate calculations.) |
| (c) | Suppose the firm issues 16,000 new shares at the price of $58, what will the effect be of this offering price on the existing price per share? (Do not round your intermediate calculations.)
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Advanced Models And Tools For Effective Decision Making Under Uncertainty And Risk Contexts
Authors: Vicente González-Prida, María Carmen Carnero
1st Edition
1799832465,179983249X
