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Question 3. (10 marks) Value Co (Value) has 15 million shares outstanding, which trade at $20 per share. Value is in a liquidity crisis and

Question 3. (10 marks) Value Co (Value) has 15 million shares outstanding, which trade at $20 per share. Value is in a liquidity crisis and issues 2 million shares at $12 per share to a group of hedge funds. What is the total loss incurred by pre-existing shareholders as a result of this share issue?

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