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Calculate the earnings per share

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Question - The Hamilton Company currently has 6 million shares of stock outstanding and will report earnings of $6.65 million in the current year. The company is considering the issuance of 1 million additional shares can be issued only at $30 per share.

a. Assume the Hamilton Company can earn 6.0 percent on the proceeds of the share issue in time to include it in the current year's results. Calculate the earnings per share.

b. Should the new issue be undertaken based on earnings per share?

Reference no: EM133077071

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