$13$ Assume Magnum Inc. is considering venturing into a new market by investing $$10\mathrm{.}5$

million. The present value of the expected future after$-$tax cash flow from the new

investment is $$100$ million. Magnum has $10$ million outstanding shares and its current stock

price is $$20.$ Assuming this investment is new information, the stock price will likely

increase by:

$PV=100,000,000$