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ABC Corporation is investing Tk. 600 million in distribution facilities. The present value of the future after-tax cash flows is estimated to be Tk 850
ABC Corporation is investing Tk. 600 million in distribution facilities. The present value of the future after-tax cash flows is estimated to be Tk 850 million. ABC has 200 million outstanding shares with a current market price of Tk. 32 per share. This investment is new information, and it is independent of other expectations about the company. What should be the effect of the price on the value of the company and the stock price?
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