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