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A company had a current share price of $61.50, and the company had 1,000,000 shares of stock outstanding. The CEO of the company is considering
A company had a current share price of $61.50, and the company had 1,000,000 shares of stock outstanding. The CEO of the company is considering an investment project that he is confident will result in an NPV of $2,500,000. However, investors are pessimistic about the project's prospect and believe that the project would results in an NPV of -$1,050,000 instead. If the CEO decided to go ahead with the project and the negative NPV expected by investors were realized, what would the new stock price be? $60.40 $60.45 $60.50 $60.55 $60.60
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