Question: Portman has 5 0 0 , 0 0 0 shares outstanding, and Judy Davis, an investor, holds 7 , 5 0 0 shares at the

Portman has 500,000 shares outstanding, and Judy Davis, an investor, holds 7,500 shares at the current price (computed above). Suppose Portman is considering issuing 62,500 new shares at a price of $27.82 per share. If the new shares are sold to outside investors, by how much will Judys investment in Portman Industries be diluted on a per-share basis?

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