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You purchased 130 shares of stock in an oil company, Carla Vista Energy, Inc., at $65 per share. The company has 1.30 million shares outstanding.
You purchased 130 shares of stock in an oil company, Carla Vista Energy, Inc., at $65 per share. The company has 1.30 million shares outstanding. Ten days later, Carla Vista Energy announced an investment in an oil field in east Texas. The probability that the investment will be successful and generate an NPV of $8 million is 0.20; the probability that the investment will be a failure and generate an NPV of negative $1 million is 0.80. How would you expect the stock price to change upon the company's announcement of the investment? (Round answer to 2 decimal places, e.g. 2.75) /share Change in stock price
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