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Zorel Deustua
on Dec 09, 2024

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Wagner Trucking is considering investing in a new project that will cost $6 million and increase net income by 5 %%. This project will be completely funded by issuing new equity shares. Currently, the firm has 2 million shares of stock outstanding with a market price of $30 per share. The current earnings per share are $1.60. What will the earnings per share be if the project is implemented?

A) $1.39
B) $1.45
C) $1.53
D) $1.60
E) $1.68

Net Income

The net income of a company once all costs and taxes are subtracted from its total revenue.

Equity Shares

Equity Shares represent ownership in a company, granting shareholders voting rights and a share in the company's profits through dividends.

Market Price

The current price at which an asset or service can be bought or sold in a open market.

  • Compute and understand the net present value (NPV) of investment endeavors and their impact on the value of a firm.
  • Evaluate how choices in financing, including those involving equity financing, influence both the book and market value of shares.
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Savanah MeyerDec 14, 2024
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