Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Assume a company has 1 2 , 5 million shares in issue. The current market price per share is R 6 5 per share. The

Assume a company has 12,5 million shares in issue. The current market price per share is R65 per share. The company has the opportunity to invest in a project with a total value of R45 million. The net present value of the project is R35 million.
What will the companies share price be if capital markets fully reflect the value of undertaking the project?
R67,50
R67,80
R65
R68
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Management Theory And Practice

Authors: Prasanna Chandra

11th Edition

9355322208, 978-9355322203

More Books

Students also viewed these Finance questions