What are effects of share issue on price per share of firm


Response to the following problem:

a. XYZ Corporation had 158 million shares outstanding on January 1, 2009. On February 2, 2009, it issued an additional 30 million shares to the market at the market price of $55 per share. What was the effect of this share issue on the price per share of the firm?

b. On February 28, 2009, directors of the same XYZ Corporation exercised stock options to acquire 12 million shares at an exercise price of $30 per share. Prior to this transaction the stock traded at $62 per share. What was the effect of the share issue to the directors on the per-share value of the firm?

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Financial Accounting: What are effects of share issue on price per share of firm
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