Q5

Problem 15-8 Price Dilution [LO3] Damron, Incorporated, has 210,000 shares of stock outstanding. Each share is worth $80, so the company's market value of equity is $16,800,000. Suppose the firm issues 46,000 new shares at the following prices: $80, $74, and $68. 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 "O". Round your answers to 2 decimal places, e.g., 32.16.) k ht Price Ex-Rights Effect nces a. $80 b. $74 Amount per share per share per share c. $68