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Bartow Industrial is reviewing a new proposal which will require $360,000 of new fixed assets. The net present value of the project is $84,000. The
Bartow Industrial is reviewing a new proposal which will require $360,000 of new fixed assets. The net present value of the project is $84,000. The price-earnings ratio of the project equals that of the existing firm. What will the new book value per share be after the project is implemented given the following current information on the firm?
Number of Shares Outstanding
50,000
Book Value
$894,000
Market Value
$1,072,000
Net Income
$67,000
Price Earnings Ratio
16
$1.34
Number of Shares Outstanding
50,000
Book Value
$894,000
Market Value
$1,072,000
Net Income
$67,000
Price Earnings Ratio
16
$1.34
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Financial Reporting Financial Statement Analysis And Valuation A Strategic Perspective
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
9th Edition
1337614689, 1337614688, 9781337668262, 978-1337614689
