A subsidiary sells additional shares of its common stock to a nonaffiliate at a price that is

Question:

A subsidiary sells additional shares of its to a nonaffiliate at a price that is higher than the previous book value per share. How does the sale benefit the existing shareholders?
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...