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Homework answers / question archive / Aki Corporation currently has 70,000 shares outstanding with a market value of $840,000

Aki Corporation currently has 70,000 shares outstanding with a market value of $840,000

Finance

Aki Corporation currently has 70,000 shares outstanding with a market value of $840,000. Recently the company considered a project which requires the purchase of a $375,000 equipment. The net present value of the project is $50,000. What will the new market value per share be after the project is implemented?

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Computation of New Market Value per Share be after the project is implemented:

Value per Share= Total Market Value/Total Number of Shares

Here,

Total number of market shares outstanding = 70,000

Total market value after the project= Net Present Value of Project + Outstanding Market Value = 50000 + 840000 = 890000

Value per Share = $890,000 / 70,000 = 12.71

So, New Market Value per Share be after the project is implemented is $12.71

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