What will be the firm''s share price after the issue


Problem

A firm is considering making a seasoned equity offering. They currently have 10,000,000 shares outstanding that are are selling for $48.50.

The firm is planning to issue 2,000,000 new shares in the primary market offer at $40 per share. Based on the current share price, what will be the firm's share price after the issue?

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Finance Basics: What will be the firm''s share price after the issue
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