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A Toronto Firm Is Considering a New Project Which Requires

question 11

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A Toronto firm is considering a new project which requires the purchase of $250,000 of new equipment. The net present value of the project is $100,000. The price-earnings ratio of the project equals that of the existing firm. What will the new market value per share be after the project is implemented given the following current information on the firm? A Toronto firm is considering a new project which requires the purchase of $250,000 of new equipment. The net present value of the project is $100,000. The price-earnings ratio of the project equals that of the existing firm. What will the new market value per share be after the project is implemented given the following current information on the firm?   A)  $6.86 B)  $7.94 C)  $8.00 D)  $8.08 E)  $8.76


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