Can you please give me right answer? You own 12 percent, or 15,000 shares, ofPrinters Ink stock that has a totalmarket value of $678,300. By whatpercentage will the total value of yourinvestment in this firm change if thecompany sells an additional 12,500shares of stock at $43.50 a share andyou do not buy any?

Step 1: Calculate the total proceeds from the sale of new shares.Total proceeds = Number of new…

Answered: You own 12 percent, or 15,000 shares,…

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter18: Initial Public Offerings, Investment Banking, And Capital Formation

Section: Chapter Questions

Problem 9MC

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You own 12 percent, or 15,000 shares, of Printers Ink stock that has a total market value of $678,300. By what percentage will the total value of your investment in this firm change if the company sells an additional 12,500 shares of stock at $43.50 a share and you do not buy any?