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Business, 11.02.2020 20:28 aceccardi03

Wayne, Inc., wishes to expand its facilities. The company currently has 5 million shares outstanding and no debt. The stock sells for $40 per share, but the book value per share is $10. Net income is currently $3.2 million. The new facility will cost $50 million, and it will increase net income by $760,000. Assume a constant price-earnings ratio.1. Calculate the new book value per share. 2. Calculate the new EPS.3. Calculate the new stock price.4. Calculate the new market-to-book ratio.5. What would the new net income for the company have to be for the stock price to remain unchanged?

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