Jason has an equity cost of capital of 10%, a stock price is $60, and a million

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Jason has an equity cost of capital of 10%, a stock price is $60, and a million shares outstanding. Jason's managers have just made an investment of $100 million. The managers and the equity market expect the new investment to earn a return on equity (ROE) of 10%. Holding everything else constant, what should Jason's stock price be after the new investment?

Posted Date: Jun 03, 2024 11:22 AM

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Jason has an equity cost of capital of 10%, a stock price is $60, and a million

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