Question: Ryan Air has 8 0 0 , 0 0 0 shares outstanding, which are trading for $ 2 3 . 6 3 per share. Using

Ryan Air has 800,000 shares outstanding, which are trading for $23.63 per share. Using the firm's required rate of return of 16 percent, a project has an NPV of $262,000. All else constant, if the project is accepted, the stock price per share would be expected to: fall to $23.34. rise to $23.92. rise to $27.65. rise to 23.96. fall to $19.62.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!