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$20 million per year. After the initial investment, future capital expenditures are expected to equal depreciation, and no further additions to net working capital are

image text in transcribed $20 million per year. After the initial investment, future capital expenditures are expected to equal depreciation, and no further additions to net working capital are anticipated. tax rate is 35%, and there are no personal taxes. b. Suppose investors think that the EBIT from WRT's expansion will be only $4 million. What will the share price be in this case? How many shares will the firm need to issue? from that found in part (a)? Once the firm announces the expansion plan, the share price will be $ per share. (Round to the nearest cent.) b. Suppose investors think that the EBIT from WRT's expansion will be only $4 million. What will the share price be in this case? How many shares will the firm need to issue? If investors think that the EBIT from WRT's expansion will be only $4 million, the share price will be $ per share. (Round to the nearest cent.) The firm will need to issue million shares. (Round to two decimal places.) Why does it differ from that found in part (a)? (Select the best choice below.) A. Shares in part (a) are not fairly valued and are undervalued in part (b). B. Shares in part (a) are not fairly valued and are fairly valued in part (b). C. Shares in part (a) are fairly valued and undervalued in part (b). D. Shares in part (a) are fairly valued and fairly valued in part (b)

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