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Suppose that the market value of a firm is $20000 and the firm has 1100 shares outstanding. Then the firm announces an investment of $4000

Suppose that the market value of a firm is $20000 and the firm has 1100 shares outstanding. Then the firm announces an investment of $4000 at time 1 and the cash generated by this investment in period2 will be $6500. The investment will be financed by issuing new shares. a) How many shares must be issued? b) What will be the market price of all shares after the new issue?

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