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Malcolm Technologies directors are considering the purchase of a subsidiary for $90 million. The present value of the future aftertax cash flows associated with the
Malcolm Technologies directors are considering the purchase of a subsidiary for $90 million. The present value of the future aftertax cash flows associated with the subsidiary is estimated to be $120 million. This is new information and is independent of other expectations regarding the company. The company has 3 million shares outstanding at the market price of $50. If the company goes ahead with the purchase, a market price of the companys stock will be closest to:
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$55
$60
$40
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