Winston's Has 12,500 Shares Outstanding with a Market Value of $288,625

Winston's has 12,500 shares outstanding with a market value of $288,625. The company is considering a project with a net present value of $5,300 that would require the purchase of $69,000 of fixed assets. The project would be financed through the sale of equity shares. The price-earnings ratio of the project equals that of the existing firm. What will the new market value per share be after the project is implemented?

A) $23.51
B) $22.72
C) $23.80
D) $23.43
E) $24.10

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free