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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 million shares in issue. The current market price per share is R per share. The company has the opportunity to invest in a project with a total value of R million. The net present value of the project is R million.
What will the companies share price be if capital markets fully reflect the value of undertaking the project?
R
R
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