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Bartow Industrial Is Reviewing a New Proposal Which Will Require

Question 91

Multiple Choice

Bartow Industrial is reviewing a new proposal which will require $360,000 of new fixed assets. The net present value of the project is $84,000. The price-earnings ratio of the project equals that of the existing firm. What will the new book value per share be after the project is implemented given the following current information on the firm? Bartow Industrial is reviewing a new proposal which will require $360,000 of new fixed assets. The net present value of the project is $84,000. The price-earnings ratio of the project equals that of the existing firm. What will the new book value per share be after the project is implemented given the following current information on the firm?   A)  $16.22 B)  $18.77 C)  $22.47 D)  $23.61 E)  $25.08


A) $16.22
B) $18.77
C) $22.47
D) $23.61
E) $25.08

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