Offering price on the existing price per share

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Reference no: EM131999452

Left Turn, Inc., has 96,000 shares of stock outstanding. Each share is worth $80, so the company's market value of equity is $7,680,000.

(a) Suppose the firm issues 16,000 new shares at the price of $80, what will the effect be of this offering price on the existing price per share? (Do not round your intermediate calculations.

A) 0.00 B) 16.50 C) -0.25 D) 32.00 E) 0.25

(b) Suppose the firm issues 16,000 new shares at the price of $73, what will the effect be of this offering price on the existing price per share? (Do not round your intermediate calculations.)

A) 14.60 B) -0.95 C) -1.05 D) -1.00 E) 30.60

(c) Suppose the firm issues 16,000 new shares at the price of $58, what will the effect be of this offering price on the existing price per share? (Do not round your intermediate calculations.)

A) 11.60 B) 27.60 C) -3.14 D) -2.99 E) -3.30

Reference no: EM131999452

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