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Nemesis, Incorporated, has 96,000 shares of stock outstanding. Each share is worth $120, so the company's market value of equity is $11,520,000. Suppose the firm

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Nemesis, Incorporated, has 96,000 shares of stock outstanding. Each share is worth $120, so the company's market value of equity is $11,520,000. Suppose the firm issues 16,000 new shares at the price of $120, what will the effect be of this offering price on the existing price per share? Amount Suppose the firm issues 16,000 new shares at the price of $112, what will the effect be of this offering price on the existing price per share? Amount

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