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What is the current value of the company

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Reference no: EM132801958

Suppose that your all-equity firm wants to raise $12M in equity to finance a new project. In exchange for $12M 1/3 of the company will be sold to new shareholders.

-What is the current value (before the project is accepted) of the company?

-If the company initially had 500,000 shares outstanding how many shares would the company have to issue to new shareholders and what would be the price per share?

Reference no: EM132801958

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