finance

Project Description:

cool real estate, inc., expects to earn $90,000,000.00 per year in perpetuity if it does not undertake any new projects. the firm has an opportunity to invest $14,000,000.00 today and $7,000,000.00 in 1 year in real estate. the new investment will generate annual earnings of $12,000,000.00 in perpetuity, beginning 2 years from today. the firm has 20,000,000 shares of common stock outstanding, and the required rate of return on the stock is 14% percent. land investments are not depreciable. ignore taxes.
• what is the price of a share of stock if the firm does not undertake the new investment?
• what is the value of the investment?
• what is the per-share stock price if the firm undertakes the investment?
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Project Stats:

Price Type: Negotiable

Completed
Total Proposals: 2
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