Portman industries be diluted on per-share basis

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Reference no: EM131891629

Portman has 1,000,000 shares outstanding, and Judy Davis, an investor, holds15,000 shares at the current price. Suppose Portman is considering issuing 125,000 new shares at a price of $19.48 per share. If the new shares are sold to outside investors, by how much will Judy’s investment in Portman Industries be diluted on a per-share basis?

Reference no: EM131891629

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