According to the textbook, the market value of a firm's outstanding shares are most likely to fall upon the announcement of a new equity offering.

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When a company announces a new equity offering, it often leads to a dilution of existing shares' value, causing the market to react negatively and the share price to drop. This is because the market anticipates that the earnings per share will be spread over a larger number of shares.

According to the Textbook, the Market Value of a Firm's