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Northern Escapes Inc. has 225,000 shares of stock outstanding. Each share is worth $73, so the companys market value of equity is $16,425,000. Suppose the
Northern Escapes Inc. has 225,000 shares of stock outstanding. Each share is worth $73, so the companys market value of equity is $16,425,000. Suppose the firm issues 30,000 new shares at the following prices: $73, $69, and $60. What will the effect be of each of these alternative offering prices on the existing price per share?
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