Carbondale Oil announces that a wildcat well that it has sunk in a new oil province has shown the existence of substantial oil reserves. The exploitation of these reserves is expected to increase Carbondale's free cash flow by $90 million per year for eight years. If investors had not been expecting this news, what is the most ikely efflect on Carbondale's stock price upon the announcement, given that Carbondale has 80 million shares outstanding, no debt, and an equity cost of capital of 8%? O A. rise by $7.76 O B. rise by $6.46 OC. rise by $5.17 O D. no effect
+1
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Carbondale Oil announces that a wildcat well that it has sunk in a new oil province has shown the existence of substantial oil reserves. ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Home » Business » Carbondale Oil announces that a wildcat well that it has sunk in a new oil province has shown the existence of substantial oil reserves.