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.)
(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.)
(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.)