Question: Solve the question using an easy to understand method WD wishes to invest $10m in a project with a positive NPV of $6m. WD is

Solve the question using an easy to understand method

WD wishes to invest $10m in a project with a positive NPV of $6m. WD is financed by 20m $1 shares with a market value of $4 per share. Funds for the new project will be raised entirely from new investors. To the nearest $0.01, at what price should new shares be issued if all the gains from them are to go to the existing shareholders? *

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