Portman has 500,000 shares outstanding, and Judy Davis, an investor, holds 7,500 shares at the current price (computed above). Suppose Portman is considering issuing 62,500 new shares at a price of $27.82 per share. If the new shares are sold to outside investors, by how much will Judys investment in Portman Industries be diluted on a per-share basis?

$0.47 per share

$0.55 per share

$0.68 per share

$1.16 per share

Thus, Judys investment will be diluted, and Judy will experience a total ____ of . ____ ?