A company is considering a project that would cost $7,500,000, which would be financed with the issue of new shares. The project is expected to increase net income by $1,500,000. Currently, the company has 3,000,000 shares outstanding that sell on the market for $75 each while the book value per share is $70. Assume the company's current PE ratio of 8 would remain constant. If the company proceeds with the project.

What is expected to be its new number of shares outstanding?

Answer rating: 100% (QA)

To determine the new number of shares outstanding we first need to calculate the earnings per share ... View the full answer