The world’s Largest Sharp Brain Virtual Experts Marketplace Just a click Away
Levels Tought:
Elementary,Middle School,High School,College,University,PHD
| Teaching Since: | Apr 2017 |
| Last Sign in: | 419 Weeks Ago, 1 Day Ago |
| Questions Answered: | 3232 |
| Tutorials Posted: | 3232 |
MBA,MCS,M.phil
Devry University
Jan-2008 - Jan-2011
MBA,MCS,M.Phil
Devry University
Feb-2000 - Jan-2004
Regional Manager
Abercrombie & Fitch.
Mar-2005 - Nov-2010
Regional Manager
Abercrombie & Fitch.
Jan-2005 - Jan-2008
|
American Health Systems currently has 5,800,000 shares of stock outstanding and will report earnings of $18 million in the current year. The company is considering the issuance of 1,400,000 additional shares that will net $20 per share to the corporation. |
 Â
| a. |
What is the immediate dilution potential for this new stock issue? (Do not round intermediate calculations and round your answer to 2 decimal places.) |
  Â
| Â Â Dilution | $Â Â per share |
 Â
| b-1. |
Assume that American Health Systems can earn 8 percent on the proceeds of the stock issue in time to include them in the current yearAc€?cs results. Calculate earnings per share. (Do not round intermediate calculations and round your answer to 2 decimal places.) |
 Â
| Â Â Earnings per share | $Â Â Â |
 Â
| b-2. | Should the new issue be undertaken based on earnings per share? | ||||
| Â | Â | ||||
| Â |
|
Hel-----------lo -----------Sir-----------/Ma-----------dam----------- T-----------han-----------k Y-----------ou -----------for----------- us-----------ing----------- ou-----------r w-----------ebs-----------ite----------- an-----------d a-----------cqu-----------isi-----------tio-----------n o-----------f m-----------y p-----------ost-----------ed -----------sol-----------uti-----------on.----------- Pl-----------eas-----------e p-----------ing----------- me----------- on----------- ch-----------at -----------I a-----------m o-----------nli-----------ne -----------or -----------inb-----------ox -----------me -----------a m-----------ess-----------age----------- I -----------wil-----------l