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outstanding with a market price of $25 per share. The current earnings per share are $3.50. What will the earnings per share be if the project is implemented? ( Do not use the $ sign in your answer. If your answer is $85.93, enter 85.93)

outstanding with a market price of $25 per share. The current earnings per share are $3.50. What will the earnings per share be if the project is implemented? ( Do not use the $ sign in your answer. If your answer is $85.93, enter 85.93)

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Amed Construction is considering investing in a new project that will cost $10 million and increase net income by 15%. This project will be completely funded by issuing new equity shares. Currently, the firm has 50 million shares of stock outstanding with a market price of $25 per share. The current earnings per share are $3.50. What will the earnings per share be if the project is implemented? ( Do not use the $ sign in your answer. If your answer is $85.93, enter 85.93) Numeric Response
Transcribed Image Text:Amed Construction is considering investing in a new project that will cost $10 million and increase net income by 15%. This project will be completely funded by issuing new equity shares. Currently, the firm has 50 million shares of stock outstanding with a market price of $25 per share. The current earnings per share are $3.50. What will the earnings per share be if the project is implemented? ( Do not use the $ sign in your answer. If your answer is $85.93, enter 85.93) Numeric Response
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