Laskos has 250,000 shares of stock outstanding, $400,000 in perpetual annual earnings, and a discount rate of 16 percent. The firm is considering a new project that has initial costs of $350,000 and annual perpetual cash flows of $60,000. What will be the change in the firms stock price per share if this project is accepted?

A.

$.14

B.

$.10

C.

$.07

D.

$1.02

E.

$31.06