Durbanet is an all-equity firm with 132,000 shares of stock outstanding. The book value per share is $14 and the market value per share is $31. The current net income is $301, 000. The firm is considering a new project that will cost $1.4 million and increase net income by $ 87,000. The current earnings per share is. if the project is and it will be. accepted.

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
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Durbanet is an all-equity firm with 132,000 shares of stock outstanding. The book value per
share is $14 and the market value per share is $31. The current net income is $301,000. The
firm is considering a new project that will cost $1.4 million and increase net income by S
87,000. The current earnings per share is
if the project is
and it will be
accepted.
Transcribed Image Text:Durbanet is an all-equity firm with 132,000 shares of stock outstanding. The book value per share is $14 and the market value per share is $31. The current net income is $301,000. The firm is considering a new project that will cost $1.4 million and increase net income by S 87,000. The current earnings per share is if the project is and it will be accepted.
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