Question
A firm's earnings per share (EPS) is $2.50, and equity investors require a return of 12%. The per-share net present value of the firm's growth
A firm's earnings per share (EPS) is $2.50, and equity investors require a return of 12%. The per-share net present value of the firm's growth opportunities is $120. What will be the stock price of the firm after it commits to the new project?
Multiple choice question.
$142.78
$122.50
$140.83
$135.56
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Fundamentals of Investment Management
Authors: Geoffrey Hirt, Stanley Block
10th edition
0078034620, 978-0078034626
