Suppose a company suddenly announces that it will do a project and smart investors (ie., like you)
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Question:
Suppose a company suddenly announces that it will do a project and smart investors (ie., like you) think this project has an NPV of -$50 million. If this company's stock price prior to the announcement was $12 and the company has 20 million outstanding shares and existing debt of $100 million, what will be the company's stock price after this project is announced? Your answer should be rounded to one decimal place.
Related Book For
Corporate Finance Core Principles and Applications
ISBN: 978-0077905200
3rd edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford
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