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One business has collected financial position information in the following table. The business is considering the impact of a proposed investment. The investment requires an

One business has collected financial position information in the following table. The business is considering the impact of a proposed investment. The investment requires an initial cost of 200,000 in fixed assets. This investment will be financed by the issue of additional shares. The investment has a NPV = 100.000 and a P / E ratio similar to that of the business. Given this information, can you fill in the current column to show how the variables variables will change if the investment is made?

business today business with new investment
shares in circulation 200.000
book value 1.000.000
book value per share 5
market value 1.600.000
market value per share 8
net profit 100.000
return on equity 10%
earnings per share 0.5
EPS / price 0.0625
price / EPS 16
price / book value 1.6

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