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Suppose a firm has 1,000 shares outstanding, and each share was originally issued in exchange for $10. Since then the value has risen to $100 per...

Suppose a firm has 1,000 shares outstanding, and each share was originally issued in exchange for $10. Since then the value has risen to $100 per share. Now suppose the firm wishes to raise $50,000 by selling new shares. How many shares should the firm issue, and at what price? Why shouldn"t it sell for less than that amount? Why can"t it sell for more?

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