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Score: 0 of 1 pt 17 of 26 to complete HW Score: %0 of 26 pts P 17-17 (similar to) AMS Company has expectedly generated a one time extra $5 million in cash flow this you. Ale ning the extra cash flow AMS mock price was per has 1 milion shares and Themes considering spending the S5 million on a project that would generate a single cash flow of $55 million in one you which they would then use to purchase shares. Assume the cost of capital for the project is 12% a. If they decide on the investment, what will happen to the price per share? b. If they instead use the 55 milion to repurchase stock immediately, what will be the price per she? c. Which decision is better and why? a. If they decide on the investment, the price per shure will be s. Pound to the newest cont) Save Score: 0 of 1 pt 18 of 26 (0 complete HW Score: 0% 0 of 26 pts P 17-18 (similar to) Question Help AMC Corporation Currently has an enterprise value (EV) of $350 million and $10 million in excess cash Them has 10 milion share outstanding and no dett. Suppose AMC uses its excess cash to repurchaseste her the share repurchase, news will come out that will change ANC enterprise value to the $550 million or 5150 milion What is AMC share price prior to the share purchase AMC share price prior to the share repurchase is Round to the newest cent) Phillip Sena & 1 10/11/20 1:25 Homework: Chapter_17 Score: 0 of 1 pt 17 of 26 (0 complete) HW Score: 0% 0 of P 17-17 (similar to) Question Help AMS Company has unexpectedly generated a one-time extra $5 million in cash flow this year announcing the extra cash flow, AMS stock price was 65 per she has 1 million shares outstanding. The managers are considering spending the $5 million on a project that would generate a single cash flow of $55 million in one year, which they would then use to purchase shares. Assume the cost of capital for the project is 17% all they decide on the investment, what will happen to the price per share? b. If they instead use the 55 milion to purchase stock immediately what will be the price per she? c. Which decision is better and why? at they decide on the investment, the price per share will be s Round to the nearest cert) + Ulm vuih. Clapiei_17 Save Score: 0 of 1 18 of 26 (complete) HW Score: 0%, 0 of 26 pts P 17-18 (similar to) Question Help AMC Corporation curry has an enterprise value (EV) of $350 milion and S105 million in excess cash The firm has 10 milions outstanding and no dett. Suppose AMC its excess cash to purchase shares. After the share repurchase, now will come out that will change AMC enterprise value to other 60 milion or $150 million What is AMC share price prior to the show repurchase? AMC shoe price prior to the share repurchase is 5 Round to the newest cont.) Score: 0 of 1 pt 17 of 26 to complete HW Score: %0 of 26 pts P 17-17 (similar to) AMS Company has expectedly generated a one time extra $5 million in cash flow this you. Ale ning the extra cash flow AMS mock price was per has 1 milion shares and Themes considering spending the S5 million on a project that would generate a single cash flow of $55 million in one you which they would then use to purchase shares. Assume the cost of capital for the project is 12% a. If they decide on the investment, what will happen to the price per share? b. If they instead use the 55 milion to repurchase stock immediately, what will be the price per she? c. Which decision is better and why? a. If they decide on the investment, the price per shure will be s. Pound to the newest cont) Save Score: 0 of 1 pt 18 of 26 (0 complete HW Score: 0% 0 of 26 pts P 17-18 (similar to) Question Help AMC Corporation Currently has an enterprise value (EV) of $350 million and $10 million in excess cash Them has 10 milion share outstanding and no dett. Suppose AMC uses its excess cash to repurchaseste her the share repurchase, news will come out that will change ANC enterprise value to the $550 million or 5150 milion What is AMC share price prior to the share purchase AMC share price prior to the share repurchase is Round to the newest cent) Phillip Sena & 1 10/11/20 1:25 Homework: Chapter_17 Score: 0 of 1 pt 17 of 26 (0 complete) HW Score: 0% 0 of P 17-17 (similar to) Question Help AMS Company has unexpectedly generated a one-time extra $5 million in cash flow this year announcing the extra cash flow, AMS stock price was 65 per she has 1 million shares outstanding. The managers are considering spending the $5 million on a project that would generate a single cash flow of $55 million in one year, which they would then use to purchase shares. Assume the cost of capital for the project is 17% all they decide on the investment, what will happen to the price per share? b. If they instead use the 55 milion to purchase stock immediately what will be the price per she? c. Which decision is better and why? at they decide on the investment, the price per share will be s Round to the nearest cert) + Ulm vuih. Clapiei_17 Save Score: 0 of 1 18 of 26 (complete) HW Score: 0%, 0 of 26 pts P 17-18 (similar to) Question Help AMC Corporation curry has an enterprise value (EV) of $350 milion and S105 million in excess cash The firm has 10 milions outstanding and no dett. Suppose AMC its excess cash to purchase shares. After the share repurchase, now will come out that will change AMC enterprise value to other 60 milion or $150 million What is AMC share price prior to the show repurchase? AMC shoe price prior to the share repurchase is 5 Round to the newest cont.)
