A firm has 10 million shares outstanding with a current market price of $20 per share.There is one investment project available to the firm.The initial investment of the project is $20 million,and the NPV of the project is $10 million.What will be the firm's stock price if capital markets fully reflect the value of undertaking the project?
A) $19
B) $20
C) $21
D) $22
Correct Answer:
Verified
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