A Firm Has Just Issued $250 Million of Equity, Which

question 111

Multiple Choice

A firm has just issued $250 million of equity, which caused its stock price to drop by 3%.Calculate the loss in value of the firm's equity given that its market value of equity was $1 billion before the new issue.(Use value in millions)

• A)$7.5 million
• B)$30.0 million
• C)$33.3 million
• D)$37.5 million

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