Woody Incorporateds current share price is $15.25, with 250,000 shares of stock outstanding. Suppose that Woody announces that it will invest $2.5 million cash in
Woody Incorporateds current share price is $15.25, with 250,000 shares of stock outstanding. Suppose that Woody announces that it will invest $2.5 million cash in a new project that is expected to increase its free cash flow by $510,000 per year for the indefinite future. If Woodys weighted average cost of capital is 17 percent, how will this announcement affect its share price?
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Authors: Jack Kapoor, Les Dlabay, Robert Hughes
3rd Edition
0073382426, 9780073382425
