Price Dilution

$[$

LO

$3$

$]$

$$Cye$,$ Inc., has

$1$

$9$

$5$

$,$

$0$

$0$

$0$

$$shares of stock outstanding. Each

share is worth $

$7$

$3$

$,$

$$so the company's market value of equity is $

$1$

$4$

$,$

$2$

$3$

$5$

$,$

$0$

$0$

$0$

$.$

$$Suppose

the firm issues

$3$

$0$

$,$

$0$

$0$

$0$

$$new shares at the following prices: $

$7$

$3$

$,$

$

$6$

$9$

$,$

$$and $

$6$

$0$

$.$

$$What

will the effect be of each of these alternative offering prices on the existing price per

share?