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Sarro Shipping, Inc., expects to earn $ 1 . 5 million per year in perpetuity if it undertakes no new investment opportunities. There are 1

Sarro Shipping, Inc., expects to earn $1.5 million per year in perpetuity if it undertakes no new investment opportunities. There are 125,000 shares of stock outstanding. The firm will have an opportunity at date 1 to spend $2,000,000 on a new marketing campaign. The new campaign will increase earnings in every subsequent period by $500,000. The firms discount rate is 8%. What is the value per share before and after deciding to accept the marketing campaign?

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