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Question
Borg Security Systems is considering the sale of 12,000 shares of stock to finance development of a new security product. The firm has 40,000 shares of common stock outstanding, par value of $1.00 per share. The firm has $60,000 in additional paid-in capital and $80,000 in retained earnings. Borg's investment bankers estimate that new shares will bring in $5.15 per share. If Borg goes ahead with the new stock issue, what will be the change in book value per share?
a. −$1.00
b. +$0.15
c. +$0.56
d. +$1.00
e. $0
Answer
This answer is hidden. It contains 552 characters.
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