Q4 Firm A has 10 shares. The present value (PV) of the firm is 500 i.e. 50 per share. It has an investment opportunity requiring an investment of 200 but it must sell new shares to raise this amount and take this opportunity. If it succeeds in issuing and investing, the end period firm PV will be 800. a) What is the lowest market price of firm A's shares that will allow the project to proceed and how many shares will it issue at this price? b) Explain in two lines why the share price might be lower than in a). Q4 Firm A has 10 shares. The present value (PV) of the firm is 500 i.e. 50 per share. It has an investment opportunity requiring an investment of 200 but it must sell new shares to raise this amount and take this opportunity. If it succeeds in issuing and investing, the end period firm PV will be 800. a) What is the lowest market price of firm A's shares that will allow the project to proceed and how many shares will it issue at this price? b) Explain in two lines why the share price might be lower than in a)