Question: FARO Technologies, whose products include portable 3D measurement equipment, recently had 33 million shares outstanding trading at $45 a share. Suppose the company announces

FARO Technologies, whose products include portable 3D measurement equipment, recently had 33

FARO Technologies, whose products include portable 3D measurement equipment, recently had 33 million shares outstanding trading at $45 a share. Suppose the company announces its intention to raise $360 million by selling new shares. a. How large a loss in dollar terms will existing FARO shareholders experience on the announcement date, based on studies that show losses are 30% of the size of the new issue? Note: Enter your answer in millions without a sign. Expected loss million b. What percentage of the value of FARO's existing equity prior to the announcement is this expected loss? Note: Round your answer to 1 decimal place. Percentage of the value c. At what price should FARO expect its existing shares to sell immediately after the announcement? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Expected price

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