What price should faro expect its existing shares to sell

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Reference no: EM133380089

Question: FARO Technologies, whose products include portable 3D measurement equipment, recently had 21 million shares outstanding trading at $30 a share. Suppose the company announces its intention to raise $240 million by selling new shares.

How large a loss in dollar terms will existing FARO shareholders experience on the announcement date, based on studies that show losses are 30% of the size of the new issue?
Note: Enter your answer in millions without a sign.

What percentage of the value of FARO's existing equity prior to the announcement is this expected loss?
Note: Round your answer to 1 decimal place.

At what price should FARO expect its existing shares to sell immediately after the announcement?

Reference no: EM133380089

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