Business, 02.04.2020 16:54 sliverx201

Lasko's has 250,000 shares of stock outstanding, $400,000 in perpetual annual earnings, and a discount rate of 16 percent. The firm is considering a new project that has initial costs of $350,000 and annual perpetual cash flows of $60,000. How many new shares must be issued to fund the new project? Ignore taxes. A) 34,653 B) 33,928 C) 35,000 D) 36,028 E) 34,209

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Lasko's has 250,000 shares of stock outstanding, $400,000 in perpetual annual earnings, and a discou...