Assume a company has 12,5 million shares in issue. The current market price per share is R65 per share. The company has the opportunity to invest in aproject with a total value of R45 million. The net present value of the project is R35 million.What will the companies share price be if capital markets fully reflect the value of undertaking the project?1. R67,5002. R67,80O 3. R65O 4. R68

Option b: This option is correct. Step 1:We have to calculate the share price after accepting the…

Answered: Assume a company has 12,5 million…

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter15: Harvesting The Business Venture Investment

Section: Chapter Questions

Problem 1fM

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