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Rabbitz Punch Soda Co. has 8 million shares outstanding priced at $52.33 per share. The firm plans on adding $104,660,000 in market value with an
Rabbitz Punch Soda Co. has 8 million shares outstanding priced at $52.33 per share. The firm plans on adding $104,660,000 in market value with an equity issue of 2 million additional shares. How will the equity issue dilute the stock price (if at all)?
a. $0.50 gain per share
b. $1.07 gain per share
c. no dilution
d. $0.35 loss per share
e. $0.97 loss per share
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