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please fast Question (5): (15 marks) Ramallah Real Estate Corporation expects to earn $750,000 per year in perpetuity if it does not undertakes any new

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Question (5): (15 marks) Ramallah Real Estate Corporation expects to earn $750,000 per year in perpetuity if it does not undertakes any new projects. The Company has an opportunity to invest $160,000 today and $50,000 in one year in Real estate. The new investment will generate annual earnings of $110,000 in perpetuity beginning two years from today the firm has 150,000 shares of common stock outstanding, and the required rate of return on the stock is 11%. Land investment are not depreciable. Ignore taxes. A. what is the price of the stock if the firm does not take the new investment. B. what is the value of the new investment(the NPVGO). C. what is the price of the stock if the firm undertakes the new investment

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