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What is the theoretical value effect of the new equipment

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Reference no: EM131790469

If a company invested 400 million on an equipment, the present value of tax cash flow is resulting in 800 million, the company has 250 million shares of common stock outstanding with a current market price of RM 32 per share, assuming this project is new information and independent of other expectations, what is the theoretical value effect of the new equipment on the company stock price?

Reference no: EM131790469

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