XYZ currently has 100,000 shares outstanding with a market price-per-share of $75. Its book value-per-share is $50. Tomorrow it issues 10,000 new shares, but it sells them at $74/share. Compared to today, its:
a) market value is higher, book value is lower
b) market value is higher, book value is higher
c) market value is lower, book value is lower
d) market value is lower, book value is higher
Ans: b) market value is higher, book value is higher
Business
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