A firm has just issued $250 million of equity, which caused its stock price to drop by 3%.Calculate the loss in value of the firm's equity given that its market value of equity was $1 billion before the new issue.(Use value in millions)
A) $7.5 million
B) $30.0 million
C) $33.3 million
D) $37.5 million
Correct Answer:
Verified
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