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6. The firm Kappa has just decided to undertake a major new project. As a result, the value of the firm in one year's time

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6. The firm Kappa has just decided to undertake a major new project. As a result, the value of the firm in one year's time will be either $120 million (probability 0.25), $250 million (probability 0.5) or $360 million (probability 0.25). The firm is financed entirely by equity and has 10 million shares. All investors are risk-neutral, the risk-free rate is 4% and there are no taxes or other market imperfections. (c) What is the expected value of the firm and the price per share? How many shares will be repurchased

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