Question

year 2012. On February 2, 2012, the company issued an additional 30 million shares to the market at a price of $50, while the market price per share was $50. "The resulting price per share after new issuance will be":

Answer 1

Price per share after new issuance will be $50

Explanation:

Given data:

The number of shares that are additionally issued by the company= 30 million, price at which the shares are issued by the company = $50, market price of shares = $50

Resulting price per share after the issuance will be:  

$=(158 \text { million } * \ 50+30 \text { million } * \ 50) /(158 \text { million }+30 \text { million })$

After solving the above equation, we get,

= $50

Therefore, the resulting price per share after the new issuance will be $50