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I'm stuck on a 3-part question, here is one part. A company recently had 26 million shares outstanding trading at $45/share. The company announces...

I'm stuck on a 3-part question, here is one part.

A company recently had 26 million shares outstanding trading at $45/share. The company announces its intention to raise $290M by selling new shares.


Studies show losses are 30%of the size of the new issue, so how large a loss in dollar terms will existing shareholders experience the day of the announcement?

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Expected loss... View the full answer

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