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Peter owns 25,000 shares of Macros Inc., which corresponds to 1% of total shares of the company. Peter's shares are valued at $225,000 in
Peter owns 25,000 shares of Macros Inc., which corresponds to 1% of total shares of the company. Peter's shares are valued at $225,000 in total in the market now. By what percentage will the total value of Peter's investment in Macros Inc. change if the company sells an additional 120,000 shares of stock at $5 a share (via rights offering) and Peter forgets to participate? 1% 0.00% 2.65% -5.71% -2.04%
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Solution Total number of shares of Macros Inc 250001 2500000 Market price of the share 2250...
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Federal Taxation 2016 Comprehensive
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
29th Edition
134104374, 978-0134104379
