The other commenters gave good answers, but to simplify (in case it helps), the math of what they're saying about issuing new stock, changes the arithmetic from

The other commenters gave good answers, but to simplify (in case it helps), the math of what they're saying about issuing new stock, changes the arithmetic from 2 / 7.4 = 27%, to 2 / (7.4 + 2) = 21%.