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Miller Tool is a successful manufacturer of both consumer and industrial hand tools and is publicly owned. The firm has several positive net present value
Miller Tool is a successful manufacturer of both consumer and industrial hand tools and is publicly owned. The firm has several positive net present value projects that it would like to pursue and thus decided to issue additional shares of common stock. As a result of this stock issue, the firm's stock price declined. Explain why this occurred when the proceeds of the issue are being used to fund positive net present value projects.
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