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A firm has 13 million shares outstanding with a current market price of $22 per share. There is one investment project available to the firm.

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A firm has 13 million shares outstanding with a current market price of $22 per share. There is one investment project available to the firm. The initial investment of the project is $22 million, and the NPV of the project is $13 million. What will be the firm's stock price if capital markets fully reflect the value of undertaking the project? (Hint: Remember that NPV is an exact dollar measure of the value added to shareholder wealth.) $21 $22 $23 $24

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