TK Ltd is considering undertaking a project with the following cash flow patterns. Year 1 2 3 4 5 NCF Sh'000 (3000) (3000) 300 6500 8400 The cost of capital is 12%.
The company's current market price per share is sh.164.50 before the decision to undertake the project is made. The company has 1,000,000 ordinary shares in issue.
Required: Assuming an efficient capital market; find the company's market value per share immediately the decision to undertake the project is made.