Canadian Company reported EPS of $4.7 at the end of 2020. The company has no growth and

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Canadian Company reported EPS of $4.7 at the end of 2020. The company has no growth and pays out all earnings as dividends. It has a new project that will require an investment of $2.3 per share in one year. The project, if undertaken, will increase earnings in the years following the investment by $6.0 in perpetuity. Investors require a 5.7 percent return on the company’s stock. What is the value per share of the company’s stock, assuming the firm undertakes the investment opportunity?

Posted Date: Oct 05, 2021 01:29 PM

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Canadian Company reported EPS of $4.7 at the end of 2020. The company has no growth and

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