Saki Sushi Restaurant has 250,000 shares of stock outstanding, $400,000 in perpetual after-tax EBIT, and a discount rate of 15 percent. The firm is considering a new project that has initial costs of $360,000 and annual perpetual after-tax EBIT of $60,000. What will be the change in the firm's stock price per share if this project is accepted? O $0.12 O $0.08 O $0.20 O $0.16

Saki Sushi Restaurant has 250,000 shares of stock outstanding, $400,000 in perpetual after-tax EBIT, and a discount rate of 15 percent. The firm is considering a new project that has initial costs of $360,000 and annual perpetual after-tax EBIT of $60,000. What will be the change in the firm's stock price per share if this project is accepted? O $0.12 O $0.08 O $0.20 O $0.16

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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