How many shares would the company have

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Question - Suppose that your all-equity firm wants to raise $12M in equity to finance a new project. In exchange for $12M 1/3 of the company will be sold to new shareholders.

What is the current value (before the project is accepted) of the company?

If the company initially had 500,000 shares outstanding how many shares would the company have to issue to new shareholders and what would be the price per share?

Reference no: EM132817812

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