What is the cost of the price drop to existing shareholders


The market value of the marketing research firm Fax Facts is $400 million. The firm issues an additional $150 million of stock, but as a result the stock price falls by 3%. What is the cost of the price drop to existing shareholders as a fraction of the funds raised? (Enter your answer in millions.) Cost of the price drop $ ______million?

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Accounting Basics: What is the cost of the price drop to existing shareholders
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