What is the share price after taking the investment

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Question - Company PT Dunia Baru has a market value of $16,750,000 consisting of $12,500,000 in equity and $4,250,000 in debt. In addition, PT Dunia Baru has a cash balance of $3,125,000 and a total of 4,000 cash issued and outstanding.

If you as a financial analyst are asked to calculate:

a. What is the share price of PT Dunia Baru?

b. If Price to Book Value (PBV) = 1.2, what is the book value per share?

c. If the firm faces an investment opportunity with a cost of $6,875,000, it is expected to provide an NPV of $3,125,000. What is the share price after taking the investment?

Reference no: EM133048801

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