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Computing new market value per share

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A company is considering a project that would cost $5,000,000, which would be financed with the issue of new shares. Currently, the company's book value per share is $18 and its EPS is $0.65. If the company proceeds with the project, its EPS is expected to increase to $0.75. Assume the company's current PE ratio of 28 would remain constant. If the company proceeds with the project, what is expected to be its new market value per share?

Reference no: EM132780658

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