The Down Under is an all-equity firm with 210,000 shares of stock outstanding. The book value per share is $23, and the market value per share is $46. The current net income is $310,800. An expansion project will cost $1.1 million. Assume the price-earnings ratio remains constant. What must be the new total net income of the firm if the market price per share is to remain at $46?

Multiple Choice

• $359,630

• $378,542

• $357,394

• $386,221

• $346,191