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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
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
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$359,630
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$378,542
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$357,394
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$386,221
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$346,191
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