Question
Problem 15-8 Price Dilution [LO3] Damron, Incorporated, has 225,000 shares of stock outstanding. Each share is worth $83, so the companys market value of equity
Problem 15-8 Price Dilution [LO3]
Damron, Incorporated, has 225,000 shares of stock outstanding. Each share is worth $83, so the companys market value of equity is $18,675,000. Suppose the firm issues 52,000 new shares at the following prices: $83, $77, and $71. What will be the ex-rights price and the effect of each of these alternative offering prices on the existing price per share? (Leave no cells blank; if there is no effect select "No change" from the dropdown and enter "0". Round your answers to 2 decimal places, e.g., 32.16.) Price Ex-RightsEffectAmounta. $83No changeper shareb. $77No changeper sharec. $71per share |
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