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ABC Inc. wants to diversify its operations. Some recent financial information for the company is shown here ABC Inc. wants to diversify its operations. Some

ABC Inc. wants to diversify its operations. Some recent financial information for the company is shown here
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ABC Inc. wants to diversify its operations. Some recent financial information for the company is shown here Stock price Number of shares 25,000 Total assets Total liabilities$200,000 Net income S60 $700,000 $480,000 ABC Inc. is considering an investment that has the same P/E ratio as the firm. The cost of the investment is $600,000 and it will be financed with a new equity issue. The return on the investment will equal ABC Inc.'s current ROE. Note: Please round your final answers to 2 decimal places. a) What is the number of new shares? Number of new shares shares b) What is the new EPS? New EPS = $ per share c) What is the new stock price? New stock price = $ d) What is the new book value per share? New book value per share = $ per share e) What is the new market to book ratio? New market-to-book = f) What is the NPV of the project? NPV = $

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