Wagner Trucking Is Considering Investing in a New Project That

question 185

Multiple Choice

Wagner Trucking is considering investing in a new project that will cost $6 million and increase net income by 5 %%. This project will be completely funded by issuing new equity shares. Currently, the firm has 2 million shares of stock outstanding with a market price of $30 per share. The current earnings per share are $1.60. What will the earnings per share be if the project is implemented?

• A) $1.39
• B) $1.45
• C) $1.53
• D) $1.60
• E) $1.68

---

Definitions:

Familiarity And Trust

The relationship between how well we know something or someone and the confidence we place in them or it.

Value

The importance, worth, or usefulness of something to someone, often measured in terms of monetary, social, or strategic significance.

S.A.V.E. Framework

A marketing concept that focuses on Solution, Access, Value, and Education to better meet customer needs and differentiate from competition.

Marketing Mix

The combination of product, price, promotion, and placement of what a company is offering.