Manapella Co. previously had 10 million shares outstanding when an investor bought 1 million shares in order to have 10% proportional ownership. When the firm asked owners to vote on a 5 million share additional issue to raise equity capital, the investor voted yes, but the new issue reduced the investor's proportional ownership. What is the investor's proportional ownership after the stock issue?

Manapella Co. previously had 10 million shares outstanding when an investor bought 1 million shares in order to have 10% proportional ownership. When the firm asked owners to vote on a 5 million share additional issue to raise equity capital, the investor voted yes, but the new issue reduced the investor's proportional ownership. What is the investor's proportional ownership after the stock issue?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter15: Dividend Policy

Section: Chapter Questions

Problem 11P

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