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Super Armor is manufactures football team wear that specializes in vibrant colors. Investors expect that there is a 40% chance that its new outerwear will be adopted by the PAC-12 Conference. If the adoption would increase firm market value by $112.5 million and currently it has 18 million shares outstanding, what would be the increase in the firm's stock price when the news of the potential adoption is announced?

Note: Explain all calculation and formulas.

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Category:- Basic Finance
Reference No.:- M91147937

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