What is the impact on the wealth of current shareholders

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Reference no: EM131932109

If a firm has $6000 in cash, $50000 in net fixed assets, and a +NPV project that requires a $5000 investment, and is scheduled to pay a $1000 dividend, what is the current value of the firm? If they choose to increase the dividend to $3000 and fund the dividend with a sale of equity, what is the impact on the wealth of current shareholders?

Reference no: EM131932109

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