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Find out new number of shares outstanding

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A company is considering a project that would cost $7,500,000, which would be financed with the issue of new shares. The project is expected to increase net income by $1,500,000. Currently, the company has 3,000,000 shares outstanding that sell on the market for $75 each while the book value per share is $70. Assume the company's current PE ratio of 8 would remain constant. If the company proceeds with the project, what is expected to be its new number of shares outstanding?

Reference no: EM132780660

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