Question 12, Problem 17- Homework: Lab #5 16 HW Score: 0%, 0 of 28 points Part 1 of 3 O Points: 0 of 3 Save AMS Company has unexpectedly generated a one-time extra $5 million in cash flow this year. After announcing the Question list K extra cash flow. AMS stock price was $55 per share (it has. 1 million shares outstanding). The managers are considering spending the $5 million on a project that would generate a single cash flow of $5.5 million in one year, which they would then use to repurchase shares, Assume the cost of capital for the project is 11%. a. If they decide on the investment, what will happen to the price per share? b. If they instead use the $5 million to repurchase stock immediately, what will be the price per share? O Question 9 c. Which decision is better and why? O Question 10 a. If they decide on the investment. the price per share will be $ . (Round to the nearest cont.) O Question 11 O Question 12 O Question 13 Help me solve this View an example Ask my instructor Clear all Check