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8.11 QUESTIONS current price of the engineering de sitive cash flow for investing and 8.1...

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8.11 QUESTIONS current price of the engineering de sitive cash flow for investing and 8.1 The company has 10,000 shares of com stock is $100 per share. The compa covers an opportunity to invest in a new techne with a present value of $210,000. The tot 10.000 shares of common stock outstanding, and the current are. The company has no debt. The vice president of engine tunity to invest in a new technology project that yields positive Jue of $210.000. The total initial capital that is required for inve oposed that capital be raised by issuing developing this project is only $110,000. It is proposed that capit Totential purchasers of common stock will be fully aware of them willing to pay "fair value" for the new shares of the compa re of the new projects equity. All potential purchasers of commor value and cost, and are willing to pay "fair value for the dat what price, to raise the A. What is the net present value of this project? B. How many shares of common stock must be issued, and at what price, to rai required capital, assuming the costs of underwriting these new shares are neplioik. What is the effect, if any, of this new project on the value of the stock of exist shareholders

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