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Number of shares outstanding 100,000 Book value $400,000 Market value $800,000 Net income $80,000 Return on equity .20 Price-earnings ratio 10 Earnings per share $.80
Number of shares outstanding | 100,000 |
Book value | $400,000 |
Market value | $800,000 |
Net income | $80,000 |
Return on equity | .20 |
Price-earnings ratio | 10 |
Earnings per share | $.80 |
Net Present Value | $100,000 |
Equipment cost | $250,000 |
1) What will be the stock price of the company after the project is readily executed?
2) Evaluate the impact on the wealth of the shareholders after the project.
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